Question

uu e the entries to record the summarized operations. PR 16-2A Entries and schedules for unfinished jobs and complete Kurtz Fencing Inc. uses a job order cost system. The following related to production for March, the first month of operations. A. Materials purchased on account, $45,000. B. Materials requisitioned and factory labor used: hed jobs and completed jobs Obj. 2 The following data summarize the operations Job 301 302 303 304 305 306 For general factory use Materials $1,850 3,150 2,200 1,800 4,230 1,770 1,200 Factory Labor $2.500 7.220 5,350 2,400 6,225 2,900 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: Machine Hours 30 41 Job 301 302 303 304 305 306 Total 63

Answer 1

1)

No.	Account titles and explanation	Debit	Credit
a)	Materials	$45000
	Accounts payable		$45000
	(To record materials purchased on account)
b)	Work in process ($1850+3150+2200+1800+4230+1770)	$15000
	Factory overhead	$1200
	Materials (15000+1200)		$16200
	(To record materials used in production)
	Work in process ($2500+7220+5350+2400+6225+2900)	$26595
	Factory overhead	$5000
	Wages payable (26595+5000)		$31595
	(To record labor used in production)
c)	Factory overhead	$1800
	Accounts payable		$1800
	(To record factory overhead cost incurred on account)
d)	Factory overhead	$2500
	Accumulated depreciation- Machinery and equipment		$2500
	(To record depreciation)
e)	Work in process (300*$30)	$9000
	Factory overhead		$9000
	(To record overhead applied)
f)	Finished goods	$38755
	Work in process		$38755
	(To record completed jobs transferred to finished goods)
g(1)	Accounts receivable ($8500+16150+13400)	$38050
	Sales		$38050
	(To record sales on account)
g(2)	Cost of goods sold	$26200
	Finished goods		$26200
	(To record cost of goods sold of the sold Jobs)

Finished goods= Materials+Labor+Overhead

= $5250+12170+8780+12555= $38755

Job 301= $1850+2500+(30*$30)= $5250

Job 302= $3150+7220+(60*$30)= $12170

Job 303= $2200+5350+(41*$30)= $8780

Job 305= $4230+6225+(70*$30)= $12555

Cost of goods sold= Job 301+Job 302+Job 303

= $5250+12170+8780= $26200

2)

Work in process
b.	15000	f.	38755
b.	26595
e.	9000
Ending balance	11840
Finished goods
f.	38755	g.	26200
Ending balance	12555

3) Schedule of Unfinished jobs

	Materials	Factory labor	Factory overhead	Total
Job 304	$1800	$2400	(63*$30)= $1890	$6090
Job 306	1770	2900	(36*$30)= 1080	5750
Balance of Work in process				$11840

4) Schedule of Completed jobs

	Materials	Factory labor	Factory overhead	Total
Job 305	$4230	$6225	(70*$30)= $2100	$12555