GIVEN: X Manufacturing Company uses a job order costing system.The following information summarizes its operations related toproduction for January, its first month of operations.
A. Purchased production materials on account, $85,000.
B. Production materials of $90,000 were requisitioned to thefactory for the five jobs started in January and for generalfactory use as follows:
Job
Materials
Job No. 1001
$15,000
Job No. 1002
14,000
Job No. 1003
11,800
Job No. 1004
20,200
Job No. 1005
22,000
General factory use
7,000
$90,000
C. Factory labor costs of $71,000 were incurred. The employeetime tickets provided the following:
Job
Factory Labor
Job No. 1001
$ 10,000
Job No. 1002
11,750
Job No. 1003
10,250
Job No. 1004
14,800
Job No. 1005
18,200
General factory use
6,000
$71,000
D. Factory overhead is allocated to jobs at a rate of $50 permachine hour. Machine hours used were:
Job
Machine Hours
Job No. 1001
105
Job No. 1002
110
Job No. 1003
95
Job No. 1004
150
Job No. 1005
120
580
E. Depreciation on the factory machinery and equipment was$6,500.
F. Factory overhead costs incurred on account were $9,800.
G. Jobs 1001, 1002 and 1004 were completed.
H. Jobs 1001 and 1002 were shipped and the customers were billed$100,000 for job 1001 and $111,000 for job 1002.
REQUIRED:
Part 1: Prepare a schedule summarizing manufacturing costs byjob incurred in January. Use the following columns and providecolumn totals.
Job DirectMaterials DirectLabor FactoryOverhead Total
Part 2: What are the January 31 balances for each ofthe following accounts? Support your answers by indicating the jobsin that balance.
Work in ProcessInventory
Finished GoodsInventory
Cost of GoodsSold
Part 3: What was cost of goods manufactured forJanuary? (Show supporting work.)
Part 4: What was gross profit for January? (Showsupporting work.)
Part 5: Prepare summary journal entries forinformation a through h given above.
GIVEN: X Manufacturing Company uses a job order costing system.The following information summarizes its operations related toproduction for January, its first month of operations.
A. Purchased production materials on account, $85,000.
B. Production materials of $90,000 were requisitioned to thefactory for the five jobs started in January and for generalfactory use as follows:
Job | Materials |
Job No. 1001 | $15,000 |
Job No. 1002 | 14,000 |
Job No. 1003 | 11,800 |
Job No. 1004 | 20,200 |
Job No. 1005 | 22,000 |
General factory use | 7,000 |
$90,000 |
C. Factory labor costs of $71,000 were incurred. The employeetime tickets provided the following:
Job | Factory Labor |
Job No. 1001 | $ 10,000 |
Job No. 1002 | 11,750 |
Job No. 1003 | 10,250 |
Job No. 1004 | 14,800 |
Job No. 1005 | 18,200 |
General factory use | 6,000 |
$71,000 |
D. Factory overhead is allocated to jobs at a rate of $50 permachine hour. Machine hours used were:
Job | Machine Hours |
Job No. 1001 | 105 |
Job No. 1002 | 110 |
Job No. 1003 | 95 |
Job No. 1004 | 150 |
Job No. 1005 | 120 |
580 |
E. Depreciation on the factory machinery and equipment was$6,500.
F. Factory overhead costs incurred on account were $9,800.
G. Jobs 1001, 1002 and 1004 were completed.
H. Jobs 1001 and 1002 were shipped and the customers were billed$100,000 for job 1001 and $111,000 for job 1002.
REQUIRED:
Part 1: Prepare a schedule summarizing manufacturing costs byjob incurred in January. Use the following columns and providecolumn totals.
Job DirectMaterials DirectLabor FactoryOverhead Total
Part 2: What are the January 31 balances for each ofthe following accounts? Support your answers by indicating the jobsin that balance.
Work in ProcessInventory
Finished GoodsInventory
Cost of GoodsSold
Part 3: What was cost of goods manufactured forJanuary? (Show supporting work.)
Part 4: What was gross profit for January? (Showsupporting work.)
Part 5: Prepare summary journal entries forinformation a through h given above.
Related questions
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, $1,870.
Materials requisitioned and factory labor used:
| Job | Materials | Factory Labor | ||
| 301 | $2,300 | $2,400 | ||
| 302 | 2,810 | 3,240 | ||
| 303 | 1,860 | 1,580 | ||
| 304 | 6,300 | 5,950 | ||
| 305 | 4,000 | 4,540 | ||
| 306 | 2,920 | 2,880 | ||
| For general factory use | 780 | 3,550 | ||
Factory overhead costs incurred on account, $4,390.
Depreciation of machinery and equipment, $1,700.
The factory overhead rate is $40 per machine hour. Machine hours used:
| Job | Machine Hours | ||
| 301 | 36 | ||
| 302 | 15 | ||
| 303 | 42 | ||
| 304 | 74 | ||
| 305 | 38 | ||
| 306 | 41 | ||
| Total | 246 | ||
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $7,370; Job 302, $7,980; Job 303, $14,850.
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. | Work in Process | ||
| Factory Overhead | |||
| c. | Factory Overhead | ||
| Accounts Payable | |||
| d. | Factory Overhead | ||
| Accumulated Depreciation-Machinery and Equipment | |||
| e. | Work in Process | ||
| Factory Overhead | |||
| f. | Finished Goods | ||
| Work in Process | |||
| g. | Accounts Receivable | ||
| Sales | |||
| Cost of Goods Sold | |||
| Finished Goods |
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 | |||
|---|---|---|---|
| (b) | (f) | ||
| (e) | |||
| Bal. | |||
| Finished Goods | |||
|---|---|---|---|
| (f) | (g) | ||
| 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 | ||||
| No. 304 | $ | $ | $ | $ | ||||
| No. 306 | ||||||||
| 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 | ||||
| Finished Goods, January 30 (Job 305) | $ | $ | ||||||
Kurtz Fencing Inc. uses a job order cost system. The followingdata summarize the operations related to production for March, thefirst month of operations:
| a. Materials purchased on account,$28,610. | |
| b. Materials requisitioned andfactory labor used: |
| Job | Materials | Factory Labor |
|---|---|---|
| 301 | $2,810 | $2,640 |
| 302 | 3,710 | 3,920 |
| 303 | 2,340 | 1,910 |
| 304 | 8,210 | 7,110 |
| 305 | 5,360 | 5,270 |
| 306 | 3,780 | 3,390 |
| For general factory use | 1,060 | 4,040 |
| c. Factory overhead costs incurredon account, $5,710. | |
| d. Depreciation of machinery andequipment, $1,910. | |
| e. The factory overhead rate is $55per machine hour. Machine hours used: |
| Job | Machine Hours |
| 301 | 24 |
| 302 | 36 |
| 303 | 29 |
| 304 | 73 |
| 305 | 41 |
| 306 | 24 |
| Total | 227 |
| f. Jobs completed: 301, 302, 303and 305. | |
| g. Jobs were shipped and customerswere billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303,$15,650. |
| Required: | |||
| 1. | Journalize the entries torecord the summarized operations. Record each item (items a-f) asan individual entry on March 31. Record item g as 2 entries. Referto the Chart of Accounts for exact wording of accounttitles. | ||
| 2. | Post the appropriate entries toT accounts for Work in Process and Finished Goods, using theidentifying letters as transaction codes. Insert memo accountbalances as of the end of the month. For grading purposes entertransactions in alphabetical order. Determine the correct endingbalance. The ending balance label is provided on the left side ofthe T account even when the ending balance is a credit. The unusedcell on the balance line should be left blank. | ||
| 3. | Prepare a schedule ofunfinished jobs to support the balance in the work in processaccount.* | ||
| 4. | Prepare a schedule of completedjobs on hand to support the balance in the finished goodsaccount.*
|
Chart of Accounts
| CHARTOF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KurtzFencing Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount Descriptions
| AmountDescriptions | |
| Balance of Work in Process, January30 | |
| Finished Goods, January 30 (Job305) | |
| Job No. 301 | |
| Job No. 302 | |
| Job No. 303 | |
| Job No. 304 | |
| Job No. 305 | |
| Job No. 306 |
Journal
Shaded cells have feedback.
1. Journalize the entries to record the summarized operations.Record each item (items a-f) as an individual entry on March 31.Record item g as 2 entries. Refer to the Chart of Accounts forexact wording of account titles.
All transactions on this page must be entered (except for postref(s)) before you will receive Check My Work feedback.
PAGE 10
JOURNAL
Score: 117/225
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
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18 |
Materials are recorded in the Materials Inventory account untilrequisitioned.
All direct costs: materials and labor are recorded in the Workin Process account.
All indirect costs are considered as overhead and are recordedin the Factory Overhead account.
Overhead is applied to Work in Process using a predeterminedoverhead rate.
The cost of completed jobs should be moved to the Finished Goodsaccount.
The cost of sold jobs should be moved to the Cost of Goods Soldaccount.
T Accounts
Shaded cells have feedback.
2. Post the appropriate entries to T accounts for Work inProcess and Finished Goods, using the identifying letters astransaction codes. Insert memo account balances as of the end ofthe month. For grading purposes enter transactions in alphabeticalorder. Determine the correct ending balance. The ending balancelabel is provided on the left side of the T account even when theending balance is a credit. The unused cell on the balance lineshould be left blank.
| Work in Process | |||
| b | f | ||
| e | |||
| Bal. | |||
| Finished Goods | |||
| f | g | ||
| Bal. | |||
Points:
6 / 12
Feedback
Check My Work
Post entries to the Work in Process T account and to theFinished Goods T account.
Schedule of Unfinished Jobs
Shaded cells have feedback.
3. Prepare a schedule of unfinished jobs to support the balancein the work in process account. Refer to the list of AmountDescriptions for the exact wording of the answer choices for textentries.
Question not attempted.
Score: 0/51
Kurtz Fencing Inc. |
Schedule of Unfinished Jobs |
1 | Job | Direct Materials | Direct Labor | Factory Overhead | Total |
2 | |||||
3 | |||||
4 |
Points:
0 / 12
Feedback
Check My Work
Include the direct materials, direct labor, and factory overheadfor each unfinished job.
Schedule of Completed Jobs
Shaded cells have feedback.
4. Prepare a schedule of completed jobs on hand to support thebalance in the finished goods account. Refer to the list of AmountDescriptions for the exact wording of the answer choices for textentries.
Kurtz Fencing Inc. |
Schedule of Completed Jobs |
1 | Job | Direct Materials | Direct Labor | Factory Overhead | Total |
2 |
Bakerston Company is a manufacturing firm that uses job-ordercosting. The company's inventory balances were as follows at thebeginning and end of the year: |
| Beginning Balance | Ending Balance | |||||
| Raw materials | $ | 11,700 | $ | 15,800 | ||
| Work in process | $ | 32,700 | $ | 14,600 | ||
| Finished goods | $ | 102,000 | $ | 121,000 | ||
The company applies overhead to jobs using a predeterminedoverhead rate based on machine-hours. At the beginning of the year,the company estimated that it would work 17,500 machine-hours andincur $262,500 in manufacturing overhead cost. The followingtransactions were recorded for the year: |
| ⢠| Raw materials were purchased,$415,000. |
| ⢠| Raw materials were requisitioned for use in production, $410,900($382,000 direct and $28,900 indirect). |
| ⢠| The following employee costs were incurred: direct labor,$332,000; indirect labor, $71,000; and administrative salaries,$154,000. |
| ⢠| Selling costs, $115,000. |
| ⢠| Factory utility costs,$27,000. |
| ⢠| Depreciation for the year was $124,000 of which $110,000 isrelated to factory operations and $14,000 is related to selling,general, and administrative activities. |
| ⢠| Manufacturing overhead was applied to jobs. The actual level ofactivity for the year was 14,200 machine-hours. |
| ⢠| Sales for the year totaled$1,283,000. |
| Required: | |||||
| a. | Prepare a schedule of cost of goods manufactured in good form.(Do not round predetermined overhead rate. Input allamounts as positive values.)
| ||||
