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Please as soon as possible. It's very urgent Kenworth Company uses a job-order costing system. Only three jobsJob 105. Job 106, and Job 107-were worked
Please as soon as possible. It's very urgent
Kenworth Company uses a job-order costing system. Only three jobsJob 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: Job Cost Sheet Job 105 Job 106 Job 107 $20,500 $13,300 $17,000 $11,000 $23,800 $15,400 $ $ $ OOO 0 E19 November costs incurred: Direct materials Direct labour Manufacturing overhead December costs incurred: Direct materials Direct labour Manufacturing overhead $ 0 $10,200 $ 7,000 $ 8,000 ? 2 $ 29,300 $ 14,000 ? The following additional information is available: a. Manufacturing overhead is applied to jobs on the basis of direct labour cost. b. Balances in the inventory accounts at November 30 were as follows: Raw Materials Work in Process Finished Goods $ 52,000 ? $ 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. Raw Materials Work In Process Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Finished Goods Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. End. Bal. 0 Accounts Payable Salaries & Wages Payable Beg. Bal. + Beg. Bal. 0 End Bal. 0 End. Bal. 2. Prepare journal entries for December as follows: Saved Help 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 Ilst Journal entry worksheet A Record the issue of materials into production and Indirect materials used during December totalled $7,000. Note: Enter debits before credits Debit Credit General Journal Event View general Journal Clear entry Record entry Next > 7 of 23 FI Saved Help Save & Exit 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 3 Record the incurrence of labour cost and Indirect labour cost totalled $12,000. Note: Enter debits before credits. Debit General Journal Event Credit 1 Vlew general Journal Clear entry Record entry c. Prepare an entry to record the incurrence of $18,600 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 transaction list Journal entry worksheet A Record the entry for actual manufacturing overhead costs for December Note: Enter debits before credits. Debit Credit Event General Journal 1 w Neyt Help Save & Exit 3-a. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Predetermined overhead rate % 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.) View transaction list Journal entry worksheetStep by Step Solution
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