Question:
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.