Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations:

A. Materials purchased on account, $45,000.

B. Materials requisitioned and factory labor used:

Job Materials Factory Labor

301......................................$1,850.......................$2,500

302........................................3,150.........................7,220

303........................................2,200.........................5,350

304........................................1,800.........................2,400

305........................................4,230.........................6,225

306........................................1,770.........................2,900

For general factory use...............1,200.........................5,000

C. Factory overhead costs incurred on account, $1,800.

D. Depreciation of machinery and equipment, $2,500.

E. The factory overhead rate is $30 per machine hour. Machine hours used:

Job Machine Hours

301.......................................30

302.......................................60

303.......................................41

304.......................................63

305.......................................70

306.......................................36

Total....................................300

F. Jobs completed: 301, 302, 303, and 305.

G. Jobs were shipped and customers were billed as follows: Job 301, $8,500; Job 302, $16,150; Job 303, $13,400.

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 transaction codes. 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.