Question

Kurtz Fencing Inc uses a border coststem The following data summarize the operations related to production for March, the fast month of operations a. Materials purchased an account, $31.030 b. Materials requisitioned and factory labor used: Job 301 Factory Labor $2.710 2,820 Materials $3,060 3,640 2,430 8,280 5,340 3,790 1,870 7010 5,100 3.170 For general factory use 1,060 4,260 c. Factory overhead costs incurred on account, $5,290. d. Depreciation of machinery and equipment, 61,960 e The factory overhead rate is 152 per machine hour Machine hours used

Answer 1

1)

No.	Account titles and explanation	Debit	Credit
a)	Materials	$31030
	Accounts payable		$31030
	(To record materials purchased on account)
b)	Work in process (3060+3640+2430+8280+5340+3790)	$26540
	Factory overhead	$1060
	Materials (26540+1060)		$27600
	(To record materials used in production)
	Work in process (2710+3820+1870+7010+5100+3170)	$23680
	Factory overhead	$4260
	Wages payable (23680+4260)		$27940
	(To record labor used in production)
c)	Factory overhead	$5290
	Accounts payable		$5290
	(To record factory overhead cost incurred on account)
d)	Factory overhead	$1960
	Accumulated depreciation- Machinery and equipment		$1960
	(To record depreciation)
e)	Work in process (222*$52)	$11544
	Factory overhead		$11544
	(To record overhead applied)
f)	Finished goods	$34678
	Work in process		$34678
	(To record completed jobs transferred to finished goods)
g)	Accounts receivable (8430+10960+15550)	$34940
	Sales		$34940
	(To record sales)
	Cost of goods sold	$22158
	Finished goods		$22158
	(To record cost of goods sold)

Finished goods= Materials+Labor+Overhead

= $6966+9384+5808+12520= $34678

Job 301= $3060+2710+(23*$52)= $6966

Job 302= $3640+3820+(37*$52)= $9384

Job 303= $2430+1870+(29*$52)= $5808

Job 305= $5340+5100+(40*$52)= $12520

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

= $6966+9384+5808= $22158

2)

Work in process
b.	26540	f.	34678
b.	23680
e.	11544
Ending balance	27086
Finished goods
f.	34678	g.	22158
Ending balance	12520

3) Schedule of Unfinished jobs

	Materials	Factory labor	Factory overhead	Total
Job 304	$8280	$7010	(70*$52)= $3640	$18930
Job 306	3790	3170	(23*$52)= 1196	8156
Balance of Work in process	$12070	$10180	$4836	$27086

4) Schedule of Completed jobs

	Materials	Factory labor	Factory overhead	Total
Job 305	$5340	5100	(40*$52)= 2080	$12520