Ottoson Fencing Inc. uses job order costing. The following data summarize the operations related to production for December, the first month of operations: a. Materials purchased on account, $50,000. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $1,850 $2,500 302 3,150 7,220 303 2,200 5,350 304 1,900 2,300 305 4,230 6,225 306 1,770 2,900 For general factory use 1,200 5,000 c. Factory overhead costs incurred on account, $1,800. d. Depreciation of machinery and equipment, $2,700. e. The factory overhead rate is $40 per machine hour. Machine hours used: Job Machine Hours 301 30 302 303 60 60 41 44 304 89 63 305 70 70 f. Jobs completed: 301, 302, 303, and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $9,000; Job 302, $16,150; Job 303, $12,800. 306 36 Total 300 Chart of Accounts Ottoson Fencing Inc. General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Machinery and Equipment 192 Accumulated Depreciation-Machinery and Equipment REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Machinery and Equipment 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends Amount Descriptions Balance of Work in Process, December 31 Finished Goods, December 31 (Job 305) Job No. 301 Job No. 302 Job No. 303 Job No. 304 Job No. 305 Job No. 306 1. Journalize the entries to record the summarized operations. Record each item (items a-1) as an individual entry on December 31. Record item g as 2 entries. General Journal Instructions DATE DESCRIPTION PAGE 10 JOURNAL ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes Insert memo account balances as of the end of the month TAccounts Instructions Bal Bal. Work in Process Finished Goods 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Schedule of Unfinished Jobs Instruction 2 1 Job 3 4 Ottoson Fencing Inc. Schedule of Unfinished Jobs Direct Materials Direct Labor Factory Overhead Total 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Schedule of Completed Jobs Instruction 1 Job Ottoson Fencing Inc. Schedule of Completed Jobs Direct Materials Direct Labor Factory Overhead Total