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Kenworth Company uses a job-order costing system. Only three jobs, Job 105, Job 106, and Job 107were worked on during November and December. Job 105

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Kenworth Company uses a job-order costing system. Only three jobs, Job 105, Job 106, and Job 107were 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 185 Job 106 Job 107 $18,300 $11,100 $ $14,800 $ 8,800 $ $23,680 $14,888 $ e November costs incurred: Direct materials Direct labour Manufacturing overhead December costs incurred: Direct materials Direct labour Manufacturing overhead s 5 @ $ 9,100 $ 24,900 55,350 $ 6,9ee $ 11,800 2 2 2 The following additional information is available a. Manufacturing overhead is applied to jobs on the basis of direct labour cost b. Balances in the inventory accounts at November 30 were as follows Raw Materials Nork in Process Finished Goods $45,400 ? $94,000 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 Work in Process 90,760 Beg Bal Beg Bal Raw Materials 45.400 39,350 6.050 End. Bal End, Bal 90.780 Manufacturing Overhead Finished Goods 94,000 Beg Bal Beg Bai End Bal 94.000 End Bal Salaries & Wages Payable Accounts Payable Beg Bal Beg Bal End. Bal 0 End Bal 0 Pronarinnal entries for Enl 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 $5,350. (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 issue of materials into production and Indirect materials used during December totalled $5,350. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general Journal 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 $9,800 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 + Record the incurrence of labour cost and Indirect labour cost totalled 59,800 Note Enter det for credits Event General Journal Debit Credit Journal entry worksheet Record the incurrence of labour cost and Indirect labour cost totalled $9,800. Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general journal c. Prepare an entry to record the incurrence of $21.430 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 Note: Enter debit before hits Event General Journal Debit Creot 1 Record entry Clear entry View general Journal 3-a. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Predetermined overhead rato % . 1 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.) View transaction list Journal entry worksheet Record the entry to record the application of overhead cost to jobs for December Note Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general Journal 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 list Journal entry worksheet Help Save & Exit Sub sts and Job Order Costing Check my word 2 Record entry Clear entry View general journal 15 Back 4. As stated earlier, Job 105 was completed during Decembet. 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 list Journal entry worksheet Record the issue of materials into production and Indirect materials used during December totalled $5,350. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general Journal 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 $9,800 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 + Record the incurrence of labour cost and Indirect labour cost totalled 59,800 Note Enter det for credits Event General Journal Debit Credit Journal entry worksheet Record the incurrence of labour cost and Indirect labour cost totalled $9,800. Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general journal c. Prepare an entry to record the incurrence of $21.430 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 Note: Enter debit before hits Event General Journal Debit Creot 1 Record entry Clear entry View general Journal 3-a. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Predetermined overhead rato % . 1 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.) View transaction list Journal entry worksheet Record the entry to record the application of overhead cost to jobs for December Note Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general Journal 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 list Journal entry worksheet Help Save & Exit Sub sts and Job Order Costing Check my word 2 Record entry Clear entry View general journal 15 Back 4. As stated earlier, Job 105 was completed during Decembet. 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 list Journal entry worksheet

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