Problem 17-2B

Cost Accounting System / Job Order Costing Warren / Reeve / Duchac Problem 17-2B solution

Entries and schedules for unfinished jobs and completed jobs

Grand Valley Apparel Co. uses a job order cost system. The following data summarize the operations related to production for May 2010, the first month of operations:

a. Materials purchased on account, $68,000.
b. Materials requisitioned and factory labor used:

c. Factory overhead costs incurred on account, $2,750.
d. Depreciation of machinery and equipment, $1,870.
e. The factory overhead rate is $25 per machine hour. Machine hours used:

f. Jobs completed: 401, 402 , 403, and 405.
g. Jobs were shipped and customers were billed as follows: Job 401, $26,000; Job 402, $33,400; Job 405, $23,400.

1. Journalize the entries to record the summarized operations. For a compound transaction, accounts should be listed in chart of account order. If an amount box does not require an entry, leave it blank.



2. After posting the appropriate entries to T accounts, on your own paper, give the following balances:

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.