Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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: The following additional information is avallable: a. Manufacturing overhead is applied to jobs on the basis of direct labur cost. b. Balances in the inventory accounts at November 30 were as follows: 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 direct materials, it is not necessary to make a separate entry for each job.) Indirect materials used during December totalled \$5.650. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 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 \$5.650. (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 $10,200 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 $19,475 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 traneaction list Journal entry worksheet A Record the entry for actual manufacturing overhead costs for December. Notez finnr debis beforet areditse \begin{tabular}{|c|c|c|c|} \hline Event & General Journal & Debit & Credit \\ \hline 1 & & & \\ \hline & & & \\ \hline \end{tabular} 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 earliek, 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.) Journal entry worksheet Record the entry to show the transfer of work in process to finished goods. Note: Enter debits belote credits. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Virtual Remote Audit From Planning To Implementation

Authors: Roland Scherb

2nd Edition

3754301667, 978-3754301661

More Books

Students also viewed these Accounting questions