Hillman Tool Company uses a job order cost system. The following data summarize the operations related to production for May 2008, the first month of operations:
a. Materials purchased on account, $9,400.
b. Materials requisitioned and factory labor used:
|
Job |
Materials |
Factory Labor |
|
No. 101 |
$ 875 |
$ 750 |
|
No. 102 |
1,275 |
985 |
|
No. 103 |
660 |
500 |
|
No. 104 |
2,200 |
1,765 |
|
No. 105 |
1,300 |
1,350 |
|
No. 106 |
925 |
790 |
|
For general factory use |
270 |
1,000 |
c. Factory overhead costs incurred on account, $405.
d. Depreciation of machinery and equipment, $520.
e. The factory overhead rate is $35 per machine hour. Machine hours used:
|
|
Machine |
|
Job |
Hours |
|
No. 101 |
6 |
|
No. 102 |
10 |
|
No. 103 |
8 |
|
No. 104 |
25 |
|
No. 105 |
11 |
|
No. 106 |
7 |
|
Total |
67 |
f. Jobs completed: 101, 102, 103, and 105.
g. Jobs were shipped and customers were billed as follows: Job 101, $4,350; Job 102, $4,800; Job 103, $2,350.
Instructions
1. Journalize the entries to record the summarized operations.
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as dates. Insert memorandum account balances as of the end of the month.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.