Question

Instructions Chart of Accounts Amount Descriptions Journal T Accounts < HI 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: a. Materials purchased on account, $30,100. b. Materials requisitioned and factory labor used: Job Materials Factory Labor $3,110 $2,720 301 302 3,710 3,810 303 1,970 2,400 8,500 304 6,870 305 5,210 5,410 306 3,850 3,290 For general factory use 1,080 4,120 c. Factory overhead costs incurred on account, $5,440. d. Depreciation of machinery and equipment, $1,980. e. The factory overhead rate is $53 per machine hour. Machine hours used: Job Machine Hours 301 25 302 35 303 32 304 73 305 38 Oh

Answer 1

	Materials (a)	Factory labor (b)	Machine hours (c)	Factory OH rate (d)	Overhead applied (e)=c*d	Total
job 301	3,110	2,720	25	53	1,325,	7,155
job 302	3,710	3,810	35	53	1,855	9,375
job 303	2,400	1,970	32	53	1,696	6,066
job 304	8,500	6,870	73	53	3,869	19,239
job 305	5,210	5,410	38	53	2,014	12,634
job 306	3,850	3,290	24	53	1,272	8,412
Total	26,780	24,070			12,031	62,881
For general factory use	1,080	4,120
Total	27,860	28,190

1.Journal Entries

Date	Accounting titles & Explanations	Debit	Credit
a	Raw materials inventory	30,100
	Accounts payable		30,100
b	Work in process inventory(26,780+24,070)	50,850
	Factory overhead(1,080+4,120)	5,200
	Raw materials inventory		27,860
	Factory wages payable		28,190
c	Factory overhead	5,440
	Accounts payable		5,440
d	Factory overhead	1,980
	Accumulated depreciation		1,980
e	Work in process inventory	12,031
	Factory overhead		12,031
f	Finished goods inventory(7,155+9375+6,066+12,634)	35,230
	Work in process inventory		35,230
g	Accounts receivable(7,990+10,960+14,290)	33,240
	Sales		33,240
	Cost of goods sold(7,155+9,375+6,066)	22,596
	Finished goods inventory		22,596

2.Work in process inventory

Work in process
b	27,860	f	35,230
b	28,190
e	12,031
Ending balance	32,851

Finished goods inventory

Finished goods
f	35,230	g	22,596
Ending balance	12,634

3.Schedule of Unfinished jobs

KURTZ FENCING INC
Schedule of Unfinished jobs
Job	Direct materials	Direct labor	Overhead applied	Total
job 304	8,500	6,870	3,869	19,239
job 306	3,850	3,290	1,272	8,412
Total	12,350	10,160	5,141	27,651

4.Schedule of Completed Jobs

KURTZ FENCING INC
Schedule of Completed jobs
Job	Direct materials	Direct labor	Overhead applied	Total
job 305	5,210	5,410	2,014	12,634