Question

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, $28,580. b. Materials requisitioned and factory labor used: Job Factory Labor Materials $3,030 $2,760 301 302 303 3,490 3,770 2,520 1,860 304 8,290 6,880 5,000 5,490 305 306 3,890 3,410 For general factory use 1,130 4,190 c. Factory overhead costs incurred on account, $5,670. d. Depreciation of machinery and equipment, $2,050. e. The factory overhead rate is $52 per machine hour. Machine hours used:

Answer 1

			Factory	overhead	total
		Materials	labor	applied
	Job 301	3,030	2,760	1404	7,194
	job 302	3,490	3,770	1976	9,236
	job 303	2,520	1,860	1456	5,836
	job 304	8,290	6,880	3796	18,966
	job 305	5,000	5,490	1976	12,466
	job 306	3,890	3,410	1404	8,704
	total	26,220	24,170	12012	62,402
1)	Journal Entries
	Accounting titles & Explanations				Debit	Credit
a)	Raw materials inventory				28,580
	Accounts payable					28,580
b)	work in process inventory				50,390
	Factory overhead				5,320
	Raw materials inventory					27,350
	Factory wages payable					28,360
c)	Factory overhead				5,670
	Accounts payable					5,670
d)	Factory overhead				2,050
	Accumulated depreciation					2,050
e)	Work in process inventory				12,012
	Factory overhead					12,012
f)	finished goods inventory				34,732
	work in process inventory					34,380
g)	Accounts receivable				34530
	Sales					34,530
	Cost of goods sold				22,266
	finished goods inventory					22,266
2)	Work in process inventory
	b)		26,220	f)		34,732
	b)		24,170
	e)		12,012
	end balance		27,670
	Finished goods inventory
	f)		34,732	g)		22,266
	End bal		12,466
3)	Schedule of Work in process account
	job	Direct	Direct	overhead	total
		materials	labor	applied
	job 304	8,290	6,880	3796	18,966
	job 306	3,890	3,410	1404	8,704
	total	12,180	10,290	5200	27,670
4)	Schedule of finished goods inventory
	job	Direct	Direct	overhead	total
		materials	labor	applied
	job 305	5,000	5,490	1976	12,466