The following information is available for Robstown Corporation for 20Y8:

Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations:

	a. Materials purchased on account, $45,000.
	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	1,800	2,400
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, $2,500.
	e. The factory overhead rate is $30 per machine hour. Machine hours used:

Job

Machine Hours

301

30

302

60

303

41

304

63

305

70

306

36

Total

300

	f. Jobs completed: 301, 302, 303, and 305.
	g. Jobs were shipped and customers were billed as follows: Job 301, $8,500; Job 302, $16,150; Job 303, $13,400.

Required:

1.

Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on March 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.

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. For grading purposes enter transactions in alphabetical order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.

3.

Prepare a schedule of unfinished jobs to support the balance in the work in process account.*

4.

Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.*

*Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

	December 31
Advertising expense	$ 68,300
Depreciation expense-office equipment	21,500
Depreciation expense-factory equipment	14,460
Direct labor	186,700
Heat, light, and power-factory	5,800
Indirect labor	24,260
Materials purchased	121,600
Office salaries expense	74,850
Property taxes-factory	4,035
Property taxes-office building	13,250
Rent expense-factory	6,025
Sales	863,500
Sales salaries expense	135,000
Supplies-factory	3,500
Miscellaneous costs-factory	5,280

Required:

a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*

b. Prepare the 20Y8 income statement.

*Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.