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 $105$ Job $106$ Job $107$

November costs incurred:

Direct materials $ $19,700$ $ $12,500$ $ $0$

Direct labour $ $16,200$ $ $10,200$ $ $0$

Manufacturing overhead $ $24,300$ $ $15,300$ $ $0$

December costs incurred:

Direct materials $ $0$ $ $9,800$ $ $27,700$

Direct labour $ $6,400$ $ $7,600$ $ $13,200$

Manufacturing overhead $???$

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 $ $49,600$

Work in Process $?$

Finished Goods $ $101,000$

Required:

$1.$ 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 $30$ balance and enter it into the Work in Process T$-$account.

$2.$ Prepare journal entries for December as follows:

a$.$ Prepare an entry to record the issue of materials into production and post the entry to appropriate 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 $$6,400.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

b$.$ 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 $$11,200$ for December. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

c$.$ Prepare an entry to record the incurrence of $$20,600$ in various actual manufacturing overhead costs for December $($credit Accounts Payable$).$ Post this entry to the appropriate T$-$accounts. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$3-$a$.$ What apparent predetermined overhead rate does the company use to assign overhead cost to jobs?

$3-$b$.$ Prepare a journal entry to record the application of overhead cost to jobs for December $($it is not necessary to make a separate entry for each job$).$ Post this entry to the appropriate T$-$accounts. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$4.$ 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. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$5.$ 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 $107?$