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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

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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 Direct labour Manufacturing overhead December costs incurred: Direct materials Direct labour Manufacturing overhead $16,900 $ 9,700 5 $13,400 $ 7,400 $ $21,440 $11,8405 $ @ $ 8,400 522,100 $4,300 56,200 $ 10,400 ? The following additional information is available a Manufacturing overhead is applied to jobs on the basis of direct labour cost b. Balonces in the inventory accounts at November 30 were as follows Raw Materials Work in Process Finished Goods $41,200 > $87,000 Required: 1. Prepare Taccounts for Raw Materials Work in Process. Finished Goods and Manufacturing Overhead Enter the November 30 inventory balonces given above in the case of Work in Process, compute the November 30 balance and enter it into the Work in Process T-account Work in Process Raw Materials 41.200 Beg Bal Beg Bal Erk BN 41.200 End Bil Finished Goods Manufacturing Overhead Bed Beg B End 0 End Bal 0 Salaries Wos Payable Accounts Payable Beg B Geg End Bar 0 End B 2. Prepare journal entries for December as follows a. Prepare an entry to record the ssue of materials into production and post the entry to appropriate Taccounts. In the case of direct materials. It is not necessary to make a separate entry for each job) Indirect materials used during December totalled $4,300 (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction Best Journal entry worksheet Record the issue of materials into production and Indirect materials used during December totalled 54,300 Debit Credit Notter det before credits Event General Journal 1 Work in process Manufactung overhead Raw materials 4300 Recoed entry Clear entry View general Journal b. Prepare on erity to record the incurrence of labour cost and post the entry to appropriate accounts in the case of direct labour Costis not necessary to make a separate entry for each job) Indirect labour cost totalled $8.400 for December (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A > Record the incurrence of labour cost and Indirect labour cost totalled $8,400. Not Enter debits before the Debit Credit Event 1 General Jouma Work in process Manufacturing overhead Salaries and wages payable B400 Record entry Clear entry View general journal c. Prepare an entry to record the incurrence of $19.540 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.) View transaction list Journal entry worksheet > Record the entry for actual manufacturing overhead costs for December Ndebit before credit Event Credit General Journal Manifatung verhead Accounts payable Debit 19.540 - 19 1540 Record entry Clear entry Clear entry View general journal 3-a. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Predetermines head rate 3-b. Prepare a journal entry to record the application of overhead cost to jobs for December 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.) View transaction list Journal entry worksheet A Record the entry to record the application of overhead cost to jobs for December Note: inter debit forget General Journal Debit Credit Event 1 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.) View transaction ist Journal entry worksheet Record the entry to show the transfer of work in process to finished goods A Notunter debits before credits Event Debi Credit 1 General Journal Fished goods Work in process Record entry Clear entry View general Journal 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? Job 105 Job 107 Total Direct materials Dired abou Manufacturing overhead Total cost 5 05 05 0

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