Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company’s operating year. Data from the job cost sheets of the three jobs follow:
Job Cost Sheet | |||||||||
Job 105 | Job 106 | Job 107 | |||||||
November costs incurred: | |||||||||
Direct materials | $ | 19,900 | $ | 12,700 | $ | 0 | |||
Direct labour | $ | 16,400 | $ | 10,400 | $ | 0 | |||
Manufacturing overhead | $ | 24,600 | $ | 15,600 | $ | 0 | |||
December costs incurred: | |||||||||
Direct materials | $ | 0 | $ | 9,900 | $ | 28,100 | |||
Direct labour | $ | 6,550 | $ | 7,700 | $ | 13,400 | |||
Manufacturing overhead | ? | ? | ? | ||||||
The following additional information is available:
Raw Materials | $ | 50,200 | |
Work in Process | ? | ||
Finished Goods | $ | 102,000 | |
Job cost sheet | |||||||||
Job 105 | Job 106 | Job 107 | total | ||||||
November costs incurred: | |||||||||
Direct materials | 19,900 | 12,700 | 0 | 32,600 | |||||
Direct labor | 16,400 | 10,400 | 0 | 26,800 | |||||
Manufacturing overhead | 24,600 | 15,600 | 0 | 40,200 | |||||
Total Beginning WIP | 60,900 | 38,700 | 0 | 99,600 | |||||
December costs incurred: | |||||||||
Direct materials | 0 | 9,900 | 28,100 | 38,000 | |||||
Direct labor | 6,550 | 7,700 | 13,400 | 27,650 | |||||
Manufacturing overhead | 9825 | 11550 | 20100 | 41,475 | |||||
cost added during december | 16,375 | 29,150 | 61,600 | 107,125 | |||||
total cost of job | 77,275 | 67,850 | 61,600 | 206,725 | |||||
1) | T-Accounts | ||||||||
Raw materials | Work in progress | ||||||||
Beg.bal | 50,200 | Beg bal | 99,600 | ||||||
44,550 | a) | a) | 38,000 | 77,275 | e) | ||||
b) | 27,650 | ||||||||
End bal | d) | 41,475 | |||||||
End bal | 129,450 | ||||||||
Finished goods | Manufacturing overhead | ||||||||
Beg.Bal | 102,000 | Beg.Bal | 0 | ||||||
e) | 77,275 | a) | 6,550 | 41,475 | d) | ||||
b) | 11,400 | ||||||||
End bal | 179,275 | c) | 20,825 | ||||||
End bal | 2,700 | ||||||||
Salaries & wages payable | Accounts payable | ||||||||
Beg bal | Beg bal | ||||||||
39,050 | b) | 20,825 | c) | ||||||
End bal | end bal | ||||||||
2) | Event | General Journl | Debit | Credit | |||||
a) | 1) | Work in process | 38,000 | ||||||
Manufacturing overhead | 6,550 | ||||||||
Raw Materials | 44,550 | ||||||||
b) | 2) | Work in process | 27,650 | ||||||
Manufacturing overhead | 11,400 | ||||||||
Salaries & wages payable | 39,050 | ||||||||
c) | 3) | Manufacturing overhead | 20,825 | ||||||
Accounts payable | 20,825 | ||||||||
3a) | predetermined overhead rate | 150% | |||||||
3b) | Work in process | 41,475 | |||||||
Manufacturing ovehead | 41,475 | ||||||||
4) | Finished goods | 77,275 | |||||||
Work in process inventory | 77,275 | ||||||||
5) | Job 106 | job 107 | total | ||||||
Direct materials | 22,600 | 28,100 | 50,700 | ||||||
direct labor | 18,100 | 13,400 | 31,500 | ||||||
manufacturing overhead | 27,150 | 20100 | 47,250 | ||||||
Total cost | 67,850 | 61,600 | 129,450 |
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were...
Kenworth Company uses a job-order costing system. Only three jobs—Job 105, Job 106, and Job 107—were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company’s operating year. Data from the job cost sheets of the three jobs follow: Job Cost Sheet Job 105 Job 106 Job 107 November costs incurred: Direct materials $ 20,500 $ 13,300 $ 0...
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The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $209,000. b. Raw materials used in production, $192,000 ($153,600 direct materials and $38,400 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per...
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