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	$	17,100		$	9,900		$	0
Direct labour	$	13,600		$	7,600		$	0
Manufacturing overhead	$	21,760		$	12,160		$	0
December costs incurred:
Direct materials	$	0		$	8,500		$	22,500
Direct labour	$	4,450		$	6,300		$	10,600
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	$	41,800
Work in Process		?
Finished Goods	$	88,000

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.

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 $4,450. (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 $8,600 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 $19,810 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.)