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, $28,610 b. Materials requisitioned and factory Labor used Job Materials Factory Labor $2,810 $2,640 3.710 2,340 3,920 1,910 7.110 5,270 8.210 5,300 3.780 3,390 306 For general factory use 1,060 4,040 c. Factory overhead costs incurred on account, $5,710. d. Depreciation of machinery and equpment, $1,910 e. The factory overhead rate is $55 per machine hour Machine hours used

Answer 1

				A	B=A*$55
			Job	Machine Hour	Applied Overhead
			301	24	$1,320
			302	36	$1,980
			303	29	$1,595
			304	73	$4,015
			305	41	$2,255
			306	24	$1,320
			Total	227	$12,485
		JOURNAL ENTRIES
	REF	ACCOUNT TITLES	DEBIT	CREDIT
	a	Raw materials inventory	$28,610
		Accounts Payable		$28,610
	b	Work in process inventory	$26,150		(2810+3710+2340+8210+5300+3780)
		Factory Overhead	$1,060
		Raw Materials Inventory		$27,210
	b	Work in process inventory	$24,240		(2640+3920+1910+7110+5270+3390)
		Factory Overhead	$4,040
		Wages Payable		$28,280
	c	Factory Overhead	$5,710
		Accounts Payable		$5,710
	d	Factory Overhead	$1,910
		Accumulated Depreciation		$1,910
	e	Work in process inventory	$12,485
		Factory Overhead		$12,485
	f	Finished Goods Inventory	$35,050
		Work in process inventory		$35,050
	g	Accounts Receivable	$34,940
		Sales Revenue		$34,940
		Cost of goods sold	$22,225		(6770+9610+5845)
		Finished Goods Inventory		$22,225
									SCHEDULE SUMMARISING MANUFACTURING COST F=C+D+E Total Applied Manufactur Sales Materials Factory Labor Overhead ing Cost Revenue 301 $2,810 $2,640 $1,320 $6,770 $8,520 302 $3,710 $3.920 $1,980 $9.610 $10.770 303 $2,340 $1,910 $1,595 $5,845 $15,650 304 $8,210 $7,110 $4,015 $19,335 305 $5,300 $5,270 $2,255 $12,825 306 $3,780 $3,390 $1,320 $8,490 TOTAL $26,150 $24,240 $12,485 $62,875 $34,940 SCHEDULE OF JOBS FINISHED IN APRIL Total Applied Manufactur Job Materials Factory Labor Overhead ing Cost 301 $2,810 $2,640 $1,320 $6,770 302 $3,710 $3,920 $1,980 $9,610 303 $2,340 $1,910 $1,595 $5,845 305 $5.300 $5,270 $2,255 $12,825 TOTAL $14,160 $13,740 $7,150 $35,050 $34,940 TOTAL $26,150 $24,240 $12,485 $62,875 T SCHEDULE OF JOBS FINISHED IN APRIL Total Applied Manufactur Job Materials Factory Labor Overhead ing Cost 301 $2,810 $2,640 $1,320 $6,770 302 $3,710 $3,920 $1,980 $9,610 303 $2,340 $1,910 $1,595 $5,845 305 $5,300 $5,270 $2,255 $12,825 TOTAL $14,160 $13,740 $7,150 $35,050 SCHEDULE OF JOBS SOLD IN APRIL Job No. Cost Sales Revenue 301 $6,770 $8,520 3021 $9,610 $10,770 303 $5,845 $15,650 TOTAL $22,225 $34,940 $22.225 Account supported: Cost of goods sold