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16 Kenworth Company uses a job-order costing system. Only three jobs-Job 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 company's operating year. Data from the job cost sheets of the three jobs follow: Job Cost Sheet Job 105 Job 106 Job 107 18 points $ 0 $19,300 $12,100 $15,800 $ 9,800 $23,700 $14,700 A A A 0 November costs incurred: Direct materials Direct labour Manufacturing overhead December costs incurred: Direct materials Direct labour Manufacturing overhead 01:36:14 0 $ $ 0 $ 9,600 $ 6,100 $ 7,400 ? ? $ 26,900 $ 12,800 ? 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 $48,400 ? $99,000 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. 16 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 18 points Work in Process Beg. Bal. Beg. Bal. 8 01:35:52 End. Bal. End. Bal. Finished Goods Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries & Wages Payable Accounts Payable Beg Bal Beg Bal End. Bal. End Bal 2. Prepare journal entries for December as follows: 16 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 $6,100. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 18 points View transaction list 01:35:36 Journal entry worksheet Record the issue of materials into production and Indirect materials used during December totalled $6,100. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal 16 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 $10,800 for December. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list 18 points 8 01:35:22 Journal entry worksheet A > Record the incurrence of labour cost and Indirect labour cost totalled $10,800. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal 16 0 c. Prepare an entry to record the incurrence of $20,150 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.) S 18 points View transaction list 8 01:35:09 Journal entry worksheet Record the entry to record the application of overhead cost to jobs for December Note: Enter debits before credits. Event General Journal Debit Credit 1 16 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 18 points 8 01:34:37 Journal entry worksheet Record the entry to record the application of overhead cost to jobs for December Note: del before cred Event General Journal Debit Credit Record entry Clear entry View general journal 16 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.) 18 points View transaction list 01:34:24 Journal entry worksheet