ACCOUNTING-Entries and Schedules for Unfinished Jobs and Completed Jobs

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April 2014, the first month of operations:

1. Materials purchased on account, $147,000.
2. Materials requisitionedand factory labor used:
3. Factory overhead costs incurred on account, $6,000.
4. Depreciation of machinery and equipment, $4,100.
5. The factory overhead rate is $40 per machine hour. Machine hours used:
6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $62,900; Job 102, $80,700; Job 105, $45,500.

Required:

1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”.

a.	SelectAccounts PayableCashFactory OverheadFinished GoodsMaterialsWork in ProcessItem 1
	SelectAccounts PayableCashFactory OverheadFinished GoodsMaterialsWork in ProcessItem 3
b.	SelectAccounts PayableCashCost of Goods SoldMaterialsWages PayableWork in ProcessItem 5
	SelectAccounts PayableAccounts ReceivableCashFactory OverheadMaterialsWages PayableItem 8
	SelectAccounts PayableAccounts ReceivableCashFactory OverheadMaterialsWork in ProcessItem 11
	SelectAccounts PayableCost of Goods SoldFactory OverheadFinished GoodsWages PayableWork in ProcessItem 14
c.	SelectAccounts PayableCashCost of Goods SoldFactory OverheadMaterialsWork in ProcessItem 17
	SelectAccounts PayableCashCost of Goods SoldFactory OverheadMaterialsWork in ProcessItem 19
d.	SelectAccounts PayableAccumulated Depreciation-Machinery and EquipmentCashCost of Goods SoldFactory OverheadWork in ProcessItem 21
	SelectAccounts PayableAccumulated Depreciation-Machinery and EquipmentCashFactory OverheadFinished GoodsWork in ProcessItem 23
e.	SelectAccounts PayableAccounts ReceivableCashFactory OverheadFinished GoodsWork in ProcessItem 25
	SelectAccounts PayableCashFactory OverheadFinished GoodsMaterialsWork in ProcessItem 27
f.	SelectAccounts PayableAccounts ReceivableCashFactory OverheadFinished GoodsWork in ProcessItem 29
	SelectAccounts PayableCashFactory OverheadFinished GoodsMaterialsWork in ProcessItem 31
g. Sale	SelectAccounts ReceivableCashFactory OverheadFinished GoodsSalesWork in ProcessItem 33
	SelectAccounts ReceivableCashFactory OverheadFinished GoodsSalesWork in ProcessItem 35
g. Cost	SelectAccounts ReceivableCost of Goods SoldFactory OverheadFinished GoodsSalesWork in ProcessItem 37
	SelectAccounts ReceivableCost of Goods SoldFactory OverheadFinished GoodsSalesWork in ProcessItem 39

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

Select(a)(b)(c)(d)(f)(g)Item 41	Select(a)(b)(c)(d)(e)(f)(g)Item 43
Select(a)(c)(d)(e)(f)(g)Item 45
Bal.

Select(a)(b)(c)(d)(e)(f)(g)Item 48	Select(a)(b)(c)(d)(e)(f)(g)Item 50
Bal.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

SelectNo. 101No. 102No. 103No. 104No. 105Item 53	$	$	$	$
SelectNo. 102No. 103No. 104No. 105No. 106Item 58
Balance of Work in Process, April 30	$

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

SelectFinished Goods, April 30 (Job 103)Finished Goods, April 30 (Job 105)Finished Goods, April 30 (Job 106)Item 64	$	$	$	$

In addition to the information in the problem:
a. Make up dates for all journal entries
b. Prepare a statement of cost of goods manufactured for the month using following inventory information:

1. Beginning Direct Materials, $45,000
2. Beginning Work in Process, $65,000
3. Beginning Finished Goods, $80,000

c. Prepare an income statement for the month to gross profit.

3. Check figures:

a. Total manufacturing costs, $302,970
b. Cost of goods manufactured, $175,090
c. Ending Work in Process, $192,880
d. Gross Profit, $46,490