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Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: Materials purchased on account, $25,420. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,570 $2,350 302 3,140 3,170 303 2,080 1,550 304 7,040 5,830 305 4,470 4,440 306 3,260 2,820 For general factory use 870 3,480 Factory overhead costs incurred on account, $4,910. Depreciation of f

Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:

Materials purchased on account, $25,420.

Materials requisitioned and factory labor used:

Job Materials Factory Labor
301 $2,570 $2,350
302 3,140 3,170
303 2,080 1,550
304 7,040 5,830
305 4,470 4,440
306 3,260 2,820
For general factory use 870 3,480

Factory overhead costs incurred on account, $4,910.

Depreciation of factory machinery and equipment, $1,670.

The factory overhead rate is $70 per machine hour. Machine hours used:

Job Machine Hours
301 43
302 29
303 29
304 82
305 45
306 23
Total 251

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

Jobs were shipped and customers were billed as follows: Job 301, $9,520; Job 302, $10,010; Job 303, $16,410.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

Entries Description Debit Credit
a.

Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessMaterials

fill in the blank 2 fill in the blank 3

Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessAccounts Payable

fill in the blank 5 fill in the blank 6
b.

Accounts PayableCost of Goods SoldMaterialsWages PayableWork in ProcessWork in Process

fill in the blank 8 fill in the blank 9

Accounts PayableAccounts ReceivableFactory OverheadMaterialsWages PayableFactory Overhead

fill in the blank 11 fill in the blank 12

Accounts PayableAccounts ReceivableFactory OverheadMaterialsWork in ProcessMaterials

fill in the blank 14 fill in the blank 15

Accounts PayableCost of Goods SoldFactory OverheadWork in ProcessWages PayableWages Payable

fill in the blank 17 fill in the blank 18
c.

Accounts PayableCost of Goods SoldFactory OverheadMaterialsWork in ProcessFactory Overhead

fill in the blank 20 fill in the blank 21

Accounts PayableCost of Goods SoldFactory OverheadMaterialsWork in ProcessAccounts Payable

fill in the blank 23 fill in the blank 24
d.

Accounts PayableAccumulated Depreciation-Machinery and EquipmentCost of Goods SoldFactory OverheadWork in ProcessFactory Overhead

fill in the blank 26 fill in the blank 27

Accounts PayableAccumulated Depreciation-Machinery and EquipmentCost of Goods SoldFactory OverheadWork in ProcessAccumulated Depreciation-Machinery and Equipment

fill in the blank 29 fill in the blank 30
e.

Accounts PayableAccounts ReceivableFactory OverheadFinished GoodsWork in ProcessWork in Process

fill in the blank 32 fill in the blank 33

Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessFactory Overhead

fill in the blank 35 fill in the blank 36
f.

Accounts PayableAccounts ReceivableFactory OverheadFinished GoodsWork in ProcessFinished Goods

fill in the blank 38 fill in the blank 39

Accounts PayableFactory OverheadFinished GoodsMaterialsWork in ProcessWork in Process

fill in the blank 41 fill in the blank 42
g.

Accounts ReceivableFactory OverheadFinished GoodsSalesWork in ProcessAccounts Receivable

fill in the blank 44 fill in the blank 45

Accounts ReceivableFactory OverheadFinished GoodsSalesWork in ProcessSales

fill in the blank 47 fill in the blank 48

Accounts PayableCost of Goods SoldFactory OverheadFinished GoodsWork in ProcessCost of Goods Sold

fill in the blank 50 fill in the blank 51

Accounts PayableCost of Goods SoldFactory OverheadFinished GoodsWork in ProcessFinished Goods

fill in the blank 53 fill in the blank 54

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

(a)(b)(c)(d)(f)(g)(b)

fill in the blank 56

(a)(b)(c)(d)(e)(f)(g)(f)

fill in the blank 58

(a)(c)(d)(e)(f)(g)(e)

fill in the blank 60
Bal. fill in the blank 61

Finished Goods

(a)(b)(c)(d)(e)(f)(g)(f)

fill in the blank 63

(a)(b)(c)(d)(e)(f)(g)(g)

fill in the blank 65
Bal. fill in the blank 66

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

Kaymer Industries Inc. Schedule of Unfinished Jobs
Job Direct Materials Direct Labor Factory Overhead Total

No. 301No. 302No. 303No. 304No. 305No. 304

$fill in the blank 68 $fill in the blank 69 $fill in the blank 70 $fill in the blank 71

No. 302No. 303No. 304No. 305No. 306No. 306

fill in the blank 73 fill in the blank 74 fill in the blank 75 fill in the blank 76
Balance of Work in Process, January 30 $fill in the blank 77

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Kaymer Industries Inc. Schedule of Completed Jobs
Job Direct Materials Direct Labor Factory Overhead Total

Finished Goods, January 30 (Job 303)Finished Goods, January 30 (Job 305)Finished Goods, January 30 (Job 306)Finished Goods, January 30 (Job 305)

$fill in the blank 79 $fill in the blank 80 $fill in the blank 81

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