Entries and Schedules for Unfinished Jobs and Completed Jobs Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: Materials purchased on account, $2,160. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,000 $1,750 302 2,440 2,360 303 1,620 1,160 304 5,480 4,340 305 3,480 3,310 306 2,540 2,100 For general factory use 680 2,590 Factory overhead costs incurred on account, $3,820. Depreciation of machinery and equipment, $1,240. The factory overhead rate is $55 per machine hour. Machine hours used: Job Machine Hours 301 30 302 21 303 37 304 68 305 29 306 25 Total 210 Jobs completed: 301, 302, 303, and 305. Jobs were shipped and customers were billed as follows: Job 301, $6,480; Job 302, $7,150; Job 303, $13,960. 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. Entries Description Debit Credit a. Materials Accounts Payable b. c. d. e. f. g. 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. Work in Process Bal. Finished Goods Bal. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Tybee Industries Inc. Schedule of Unfinished Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $ Balance of Work in Process, January 30 $ 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Tybee Industries Inc. Schedule of Completed Jobs Job Direct Materials Direct Labor Factory Overhead Total $ $ $ $
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Entries and Schedules for Unfinished Jobs and Completed Jobs
Tybee Industries Inc. uses a
- Materials purchased on account, $2,160.
- Materials requisitioned and factory labor used:
Job Materials Factory Labor 301 $2,000 $1,750 302 2,440 2,360 303 1,620 1,160 304 5,480 4,340 305 3,480 3,310 306 2,540 2,100 For general factory use 680 2,590 Factory overhead costs incurred on account, $3,820.Depreciation of machinery and equipment, $1,240.- The factory overhead rate is $55 per machine hour. Machine hours used:
Job Machine Hours 301 30 302 21 303 37 304 68 305 29 306 25 Total 210 - Jobs completed: 301, 302, 303, and 305.
- Jobs were shipped and customers were billed as follows: Job 301, $6,480; Job 302, $7,150; Job 303, $13,960.
Required:
1.
| Entries | Description | Debit | Credit |
|---|---|---|---|
| a. | Materials | ||
| Accounts Payable | |||
| b. | |||
| c. | |||
| d. | |||
| e. | |||
| f. | |||
| g. | |||
2.
| Work in Process | |||
|---|---|---|---|
| Bal. |
| Finished Goods | |||
|---|---|---|---|
| Bal. |
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
| Tybee Industries Inc. Schedule of Unfinished Jobs |
||||||||
|---|---|---|---|---|---|---|---|---|
| Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
| $ | $ | $ | $ | |||||
| Balance of Work in Process, January 30 | $ |
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
| Tybee Industries Inc. Schedule of Completed Jobs |
||||||||
|---|---|---|---|---|---|---|---|---|
| Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
| $ | $ | $ | $ |
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