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	$	19,900		$	12,700		$	0
Direct labour	$	16,400		$	10,400		$	0
Manufacturing overhead	$	24,600		$	15,600		$	0
December costs incurred:
Direct materials	$	0		$	9,900		$	28,100
Direct labour	$	6,550		$	7,700		$	13,400
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	$	50,200
Work in Process		?
Finished Goods	$	102,000

Required: 1. Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead. Entert inventory balances given above; in the case of Work in Process, compute the November 30 balance and enter it Process T-account. Work in Process Beg. Bal. Beg. Bal Raw Materials 50,200 44,650 5,650 58,075 e. End. Bal. 38,000 27,650 41.475 49,050 End. Bal. Manufacturing Overhead Beg Bal Beg. Bal Finished Goods 102,000 58,075 160,075 41,475 d. End. Bal. 6.550 11,400 20,825 End. Bal. 2.700 Salaries & Wages Payable Accounts Payable Beg. Bal. Beg. Bal. 39,050 b. 20,825 End. Bal. 39,050 End, Bal 20,825 Rod text Indicatos no rxponse was expecoed in a call or a formula-based calculation is connect; na points deducted. 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 $6.550. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event General Journal Debit Credit Work in process Manufacturing overhead Raw materials 38,000 6,550 44,550 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 $11,400 for December (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event Credit General Journal Work in process Manufacturing overhead Salaries and wages payable Debit 27,650 11,400 39,050 c. Prepare an entry to record the incurrence of $20.825 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.) General Journal Credit No 1 Event 1 Debit 20,825 Manufacturing overhead Accounts payable 20,825 3-a. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Predetermined overhead 150 % rate 3-b. Prepare a journal entry to record the application of averhead cast 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.) No Event Credit General Journal Work in process Manufacturing overhead Debit 41,475 1 41,475 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.) No Event General Journal Credit Debit 58.075 X Finished goods Work in process 58,075 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 106 Job 107 Total Direct materials $ 0 s 9.900 $ 28,100 Direct labour 6,550 7,700 13.400 Manufacturing Overhead Total cost $ 6,550 S 17.600 $ 41,500 Red text Indicatos no response was God in a call or a formula bad calculation is incorrect; na points