Godwin Fixtures Co. uses a job order cost system. The following data summarize the operations related to production for April 2008, the first month of operations:
a. Materials purchased on account, $137,000.
b. Materials requisitioned and factory labor used:
|
Job |
Materials |
Factory Labor |
|
No. 601 |
$18,100 |
$17,000 |
|
No. 602 |
20,000 |
25,500 |
|
No. 603 |
13,050 |
9,700 |
|
No. 604 |
34,500 |
33,550 |
|
No. 605 |
15,700 |
14,800 |
|
No. 606 |
17,800 |
18,300 |
|
For general factory use |
6,600 |
47,000 |
c. Factory overhead costs incurred on account, $4,950.
d. Depreciation of machinery and equipment, $3,700.
e. The factory overhead rate is $53 per machine hour. Machine hours used:
|
Job |
Machine Hours |
|
No. 601 |
215 |
|
No. 602 |
230 |
|
No. 603 |
175 |
|
No. 604 |
300 |
|
No. 605 |
198 |
|
No. 606 |
225 |
|
Total |
1,343 |
f. Jobs completed: 601, 602, 603, and 605.
g. Jobs were shipped and customers were billed as follows: Job 601, $72,750; Job 602, $88,780; Job 605, $74,500.
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.