Journal Entries [LOS, Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Job 106, and Job 107- were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company's operating year. Data from the job cost sheets of the three jobs follow: Job Cost Sheet Job 106 Job 107 November costs incurred: Direct materials. Direct labour. Manufacturing overhead. December costs incurred: Direct materials... Direct labour Manufacturing overhead. Job 105 $16,500 $ 9,300 $ 0 $13,000 $7,000 $ 0 $20,800 $11,200 $ 0 $ 0 $ 8,200 $21.300 $ 4,000 $ 6,000 $10,000 ? The following additional information is available: Manufacturing overhead is applied to jobs on the basis of direct labour cost. Balances in the inventory accounts at November 30 were as follows: Raw Materials. Work in Process Finished Goods. $40,000 2 $85.000 Required: L 2. 3. 4. 5. Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead. Enter the November 30 inventory balances given above; in the case of Work in Process. compute the November 30 halance and enter it into the Work in Process T-account. Prepare journal entries for December as follows: a b. 6 Prepare an entry to record the issue of materials into production, and post the entry to appro priate T-accounts. (In the case of direct materials, it is not necessary to make a separate entry for each job.) Indirect materials used during December totalled $4,000. Prepare an entry to record the incurrence of labour cost, and post the entry to appropriate T-accounts. (In the case of direct labour cost, it is not necessary to make a separate entry for each job.) Indirect labour cost totalled $8,000 for December Prepare an entry to record the incurrence of $19,000 in various actual manufacturing overhead costs for December (credit Accounts Payable). Post this entry to the appropriate T-accounts What apparent predetermined overhead rate does the company use to assign overhead cost o jobs? Using this rate, prepare a journal entry to record the application of overhead cost to je for December (it is not necessary to make a separate entry for each job). Post this entry to the appropriate T-accounts. As stated earlier, Job 105 was completed during December. Prepare a journal entry to show the transfer of this job off the production line and into the finished goods warehouse. Post the entry to the appropriate T-accounts. Determine the balance at December 31 in the Work in Process inventory account. How much of this balance consists of costs charged to Job 106 Job 107?