Question

Chapter 16 Homework (Application) eBook Calculator 1. EX. 16.01 Entries and schedules for unfinished jobs and completed jobs 2. EX.16.06.ALGO Instructions Chart of Accounts Amount Descriptions ! Journal ! Accounts Schedule of Unfinished Jobs 3. EX. 16.10.ALGO Instructions 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: 4. EX.16.12.ALGO 5. EX.16.14.ALGO a. Materials purchased on account, $28,790. b. Materials requisitioned and factory labor used: 6. EX.16.15.ALGO 7. PR. 16.01A.BLANKSHEET.A... Job Factory Labor $2.910 8. PR. 16.02A.BLANKSHEET.A... Materials $2.880 3,690 2,300 3,860 1.780 9. MAD. 16.03 7,820 6.990 10. CMA. 16.01 305 5,310 5,050 3,280 11. EX. 16-02.EXCEL.ALGO 3.700 1,070 For general factory use 4,180 12. EX. 16-11.EXCEL.ALGO 13. EX.16-14EXCEL.ALGO c. Factory overhead costs incurred on account, S5,600. d. Depreciation of machinery and equipment S1,970. e. The factory overhead rate is $53 per machine hour. Machine hours used: Job Machine Hours 301 25

1.	Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on March 31. Record item g as 2 entries. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
2.	Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. For grading purposes enter transactions in alphabetical order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.
3.	Prepare a schedule of unfinished jobs to support the balance in the work in process account.*
4.	Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.* *Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

Answer 1

			Factory	overhead	total
		Materials	labor	applied
	Job 301	2,880	2,910	1325	7,115
	job 302	3,690	3,880	1802	9,372
	job 303	2,300	1,780	1590	5,670
	job 304	7,820	6,990	3763	18,573
	job 305	5,310	5,050	2226	12,586
	job 306	3,700	3,280	1378	8,358
	total	25,700	23,890	12084	61,674
1)	Journal Entries
	Accounting titles & Explanations				Debit	Credit
a)	Raw materials inventory				28,790
	Accounts payable					28,790
b)	work in process inventory				49,590
	Factory overhead				5,250
	Raw materials inventory					26,770
	Factory wages payable					28,070
c)	Factory overhead				5,600
	Accounts payable					5,600
d)	Factory overhead				1,970
	Accumulated depreciation					1,970
e)	Work in process inventory				12,084
	Factory overhead					12,084
f)	finished goods inventory				34,743
	work in process inventory					34,380
g)	Accounts receivable				35720
	Sales					35,720
	Cost of goods sold				22,157
	finished goods inventory					22,157
2)	Work in process inventory
	b)		25,700	f)		34,743
	b)		23,890
	e)		12,084
	end balance		26,931
	Finished goods inventory
	f)		34,743	g)		22,157
	End bal		12,586
3)	Schedule of Work in process account
	job	Direct	Direct	overhead	total
		materials	labor	applied
	job 304	7,820	6,990	3763	18,573
	job 306	3,700	3,280	1378	8,358
	total	11,520	10,270	5141	26,931
4)	Schedule of finished goods inventory
	job	Direct	Direct	overhead	total
		materials	labor	applied
	job 305	5,310	5,050	2226	12,586