Kenworth Company uses a job-order costing system. Only three jobsJob 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 companys 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	$	20,500		$	13,300		$	0
Direct labour	$	17,000		$	11,000		$	0
Manufacturing overhead	$	23,800		$	15,400		$	0
December costs incurred:
Direct materials	$	0		$	10,200		$	29,300
Direct labour	$	7,000		$	8,000		$	14,000
Manufacturing overhead		?			?			?

The following additional information is available:

1. Manufacturing overhead is applied to jobs on the basis of direct labour cost.
2. Balances in the inventory accounts at November 30 were as follows:

Raw Materials	$	52,000
Work in Process		?
Finished Goods	$	105,000

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.

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Work in Process Raw Materials 52,000 Beg. Bal. Beg. Bal End. Bal. 52,000 End. Bal Finished Goods Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal 0 Salaries & Wages Payable Accounts Payable Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 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 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 $7,000. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit 1 Work in process Manufacturing overhead Raw materials 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 $12,000 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 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