Reference no: EM132684540
Problem - Entries and schedules for unfinished jobs and completed jobs
Sinatra Industries, Inc., uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:
a. Materials purchased on account, $32,760.
b. Materials requisitioned and factory labor used:
|
Job
|
Materials
|
Factory Labor
|
|
301
|
$3,290
|
$3,080
|
|
302
|
$3,290
|
4,160
|
|
303
|
2,660
|
2,080
|
|
304
|
9,030
|
7,640
|
|
305
|
5,740
|
5,810
|
|
306
|
4,170
|
3,710
|
|
For general factory use
|
1,200
|
4,550
|
c. Factory overhead costs incurred on account, $6,300.
d. Depreciation of machinery and equipment, $2,200.
e. The factory overhead rate is $58 per machine hour. Machine hours used:
|
Job
|
Machine Hours
|
|
301
|
26
|
|
302
|
38
|
|
303
|
30
|
|
304
|
80
|
|
305
|
40
|
|
306
|
26
|
|
Total
|
240
|
f. Jobs completed: 301, 302, 303, and 305.
g. Jobs were shipped and customers were billed as follows: Job 301, $9,150; Job 302, $12,350; Job 303, $16,600.
Required -
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 memo 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.