Staircase Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 2014, the first month of operations:
Materials purchased on account, $2090.
Materials requisitioned and factory labor used:
|
Job
|
Materials
|
Factory Labor
|
|
No. 301
|
$1,920
|
|
$1,740
|
|
|
No. 302
|
2340
|
|
2,350
|
|
|
No. 303
|
1560
|
|
1,150
|
|
|
No. 304
|
5260
|
|
4,320
|
|
|
No. 305
|
3340
|
|
3,290
|
|
|
No. 306
|
2440
|
|
2,090
|
|
|
For general factory use
|
650
|
|
2,090
|
|
Factory overhead costs incurred on account, $3,670
Depreciation of machinery and equipment, $1,240.
The factory overhead rate is $75 per machine hour. Machine hours used:
|
Job
|
Machine Hours
|
|
No. 301
|
27
|
|
|
No. 302
|
43
|
|
|
No. 303
|
38
|
|
|
No. 304
|
80
|
|
|
No. 305
|
28
|
|
|
No. 306
|
35
|
|
|
Total
|
255
|
|
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $6,280; Job 302, $9,500; Job 303, $16,120.
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 or enter "0".
|
Entries
|
Description
|
Debit
|
Credit
|
|
a. Materials
|
|
|
|
Accounts Payable
|
|
|
|
|
|
|
b. Work in Process
|
|
|
|
Factory Overhead
|
|
|
|
Materials
|
|
|
|
Wages Payable
|
|
|
|
|
|
|
c. Factory Overhead
|
|
|
|
Accounts Payable
|
|
|
|
|
|
|
d. Factory Overhead
|
|
|
|
Accumulated Depreciation-Machinery&Equipment
|
|
|
|
|
|
|
e. Work in Process
|
|
|
|
Factory Overhead
|
|
|
|
|
|
|
f. Finished Goods
|
|
|
|
Work in Process
|
|
|
|
|
|
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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
|
|
(select a,b,c,d,e,f or g)
|
|
(select a,b,c,d,e,f or g)
|
|
|
(select a,b,c,d,e,f or g)
|
|
|
|
Balance
|
|
Finished Goods
|
|
(select a,b,c,d,e,f,g)
|
|
(select a,b,c,d,e,f, or g)
|
|
|
Balance
|
|
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
|
Staircase Equipment Company Schesule of Unfineshed Jobs
|
|
Job
|
Direct Materials
|
Direct Labor
|
Factory Overhead
|
Total
|
|
(select #301,302,303,304,305)
|
$
|
$
|
$
|
$
|
|
(selct #301,302,303,304,305)
|
|
|
|
|
|
Balance of Work in Process, April 30
|
$
|
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
|
Staircase Equipment Company Schedule of Completed Jobs
|
|
Job
|
Direct Materials
|
Direct Labor
|
Factory Overhead
|
Total
|
|
(select job:303,305,306)
|
$
|
$
|
$
|
$
|