Question

Instructions Kurtz Fencing Inc. uses a job order costsystem. 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 $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 2.000 5,000 306 For general factory use

Answer 1

1)

JOURNAL
	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1.	a)	Materials		$45000
2.		Accounts payable			$45000
3.		(To record materials purchased on account)
4.	b)	Work in process ($1850+3150+2200+1800+4230+1770)		$15000
5.		Factory overhead		$1200
6.		Materials (15000+1200)			$16200
7.		(To record materials used in production)
8.		Work in process ($2500+7220+5350+2400+6225+2900)		$26595
9.		Factory overhead		$5000
10.		Wages payable (26595+5000)			$31595
11.		(To record labor used in production)
12.	c)	Factory overhead		$1800
13.		Accounts payable			$1800
14.		(To record factory overhead cost incurred on account)
15.	d)	Factory overhead		$2500
16.		Accumulated depreciation- Machinery and equipment			$2500
17.		(To record depreciation)
18.	e)	Work in process (300*$30)		$9000
19.		Factory overhead			$9000
20.		(To record overhead applied)
21.	f)	Finished goods		$38755
22.		Work in process			$38755
23.		(To record completed jobs transferred to finished goods)
24.	g(1)	Accounts receivable ($8500+16150+13400)		$38050
25.		Sales			$38050
26.		(To record sales on account)
27.	g(2)	Cost of goods sold		$26200
28.		Finished goods			$26200
29.		(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+26595)	41595	f.	38755
e.	9000
Ending balance	$11840
Finished goods
f.	38755	g.	26200
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