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, $2,230. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,520 $2,190 302 3,070 2,960 303 2,040 1,450 304 6,900 5,430 305 4,380 4,140 306 3,200 2,630 For general factory use 860 3,240 Factory overhead costs incurred on account, $4,810. Depreciation of machinery and equipment, $1,550. The factory overhead rate is $45 per machine hour. Machine hours used: Job Machine Hours 301 44 302 19 303 20 304 83 305 45 306 27 Total 238 Jobs completed: 301, 302, 303, and 305. Jobs were shipped and customers were billed as follows: Job 301, $8,030; Job 302, $8,260; Job 303, $12,730. 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

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:

  1. Materials purchased on account, $2,230.
  2. Materials requisitioned and factory labor used:

    Job Materials Factory Labor
    301 $2,520 $2,190
    302 3,070 2,960
    303 2,040 1,450
    304 6,900 5,430
    305 4,380 4,140
    306 3,200 2,630
    For general factory use 860 3,240
  3. Factory overhead costs incurred on account, $4,810.
  4. Depreciation of machinery and equipment, $1,550.
  5. The factory overhead rate is $45 per machine hour. Machine hours used:

    Job Machine Hours
    301 44
    302 19
    303 20
    304 83
    305 45
    306 27
    Total 238
  6. Jobs completed: 301, 302, 303, and 305.
  7. Jobs were shipped and customers were billed as follows: Job 301, $8,030; Job 302, $8,260; Job 303, $12,730.

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.

**Journal Entries Overview**

This image displays a series of journal entries, showcasing typical transactions in a manufacturing setting. Each entry involves debits and credits to various accounts to track the flow of costs through the production process.

**Entries and Descriptions:**

1. **Entry a:**
   - **Materials:**
     - *Debit:* $2,230
     - *Credit:* (Accounts Payable) $2,230
   - Indicates purchase of materials on account.

2. **Entry b:**
   - **Work in Process:**
     - *Debit:* $40,910
   - **Factory Overhead:**
     - *Debit:* $4,100
   - **Materials:**
     - *Credit:* $22,970
   - **Wages Payable:**
     - *Credit:* $27,210
     - *Note:* Error is indicated (red X).
   - Represents allocation of costs to production, including wages and materials.

3. **Entry c:**
   - **Factory Overhead:**
     - *Debit:* $4,810
   - **Accounts Payable:**
     - *Credit:* $4,810
   - Allocation of overhead expenses to accounts payable.

4. **Entry d:**
   - **Factory Overhead:**
     - *Debit:* $1,550
   - **Accumulated Depreciation - Machinery and Equipment:**
     - *Credit:* $1,550
   - Depreciation allocation for machinery and equipment.

5. **Entry e:**
   - **Work in Process:**
     - *Debit:* $10,710
   - **Factory Overhead:**
     - *Credit:* $10,710
   - Represents transfer of applied overhead to work in process.

6. **Entry f:**
   - **Finished Goods:**
     - *Debit:* $28,510
   - **Work in Process:**
     - *Credit:* $28,510
   - Completion of goods, moving costs to finished goods.

7. **Entry g:**
   - **Accounts Receivable:**
     - *Debit:* $29,020
   - **Sales:**
     - *Credit:* $29,020
   - Records sale of goods on credit.

8. **Final Entry:**
   - **Cost of Goods Sold:**
     - *Debit:* $17,965
Transcribed Image Text:**Journal Entries Overview** This image displays a series of journal entries, showcasing typical transactions in a manufacturing setting. Each entry involves debits and credits to various accounts to track the flow of costs through the production process. **Entries and Descriptions:** 1. **Entry a:** - **Materials:** - *Debit:* $2,230 - *Credit:* (Accounts Payable) $2,230 - Indicates purchase of materials on account. 2. **Entry b:** - **Work in Process:** - *Debit:* $40,910 - **Factory Overhead:** - *Debit:* $4,100 - **Materials:** - *Credit:* $22,970 - **Wages Payable:** - *Credit:* $27,210 - *Note:* Error is indicated (red X). - Represents allocation of costs to production, including wages and materials. 3. **Entry c:** - **Factory Overhead:** - *Debit:* $4,810 - **Accounts Payable:** - *Credit:* $4,810 - Allocation of overhead expenses to accounts payable. 4. **Entry d:** - **Factory Overhead:** - *Debit:* $1,550 - **Accumulated Depreciation - Machinery and Equipment:** - *Credit:* $1,550 - Depreciation allocation for machinery and equipment. 5. **Entry e:** - **Work in Process:** - *Debit:* $10,710 - **Factory Overhead:** - *Credit:* $10,710 - Represents transfer of applied overhead to work in process. 6. **Entry f:** - **Finished Goods:** - *Debit:* $28,510 - **Work in Process:** - *Credit:* $28,510 - Completion of goods, moving costs to finished goods. 7. **Entry g:** - **Accounts Receivable:** - *Debit:* $29,020 - **Sales:** - *Credit:* $29,020 - Records sale of goods on credit. 8. **Final Entry:** - **Cost of Goods Sold:** - *Debit:* $17,965
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education