Question

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, 528,580 b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,760 $3,030 3,490 302 3,770 303 2,520 1,860 304 8,290 6,880 305 5,000 5,490 306 3,890 3.410 For general factory use 1,130 4,190 c. Factory overhead costs incurred on account, $5,670 d. Depreciation of machinery and equipment, 52,050 The factory overhead rate is 652 per machine hour Machine hue lisad Check My Work

Answer 1

Working as follows:

Job	Direct materials	Direct Labor	Applied Overhead	Total Cost
301	$3,030	$2,760	[$52 * 27] = $1404	$7,194
302	$3,490	$3,770	[$52 * 38] = $1976	$9,236
303	$2,520	$1,860	[$52 * 28] = $1456	$5,836
304	$8,290	$6,880	[$52 * 73] = $3796	$18,966
305	$5,000	$5,490	[$52 * 38] = $1976	$12,466
306	$3,890	$3,410	[$52 * 27] = $1404	$8,704
Total	$26,220	$24,170	$12,012	$62,402

____________________________________________________

Finished Jobs	$34,732
[Job 301 + Job 302 + Job 303 + Job 305]
Work in process	$27,670
[Job 304 + Job 306]
Cost of goods sold	$22,266
[Job 301 + Job 302 + Job 303]
Sales	$34,530
[$8340 + $10880 + $15310]

_________________________________________________

Prepare journal entries as follows:

Trn.	Account Titles	Debit	Credit
a)	Raw materials inventory	$28,580
	Accounts payable		$28,580
b)	Work in process	$50,390
	Factory overhead [$1130 + $4190]	$5,320
	Raw materials [$26220 + $1130]		$27,350
	Factory payroll [$24170 + $4190]		$28,360
c)	Factory overhead	$5,670
	Accounts payable		$5,670
d)	Factory overhead	$2,050
	Accumulated depreciation		$2,050
e)	Work in process	$12,012
	Factory overhead		$12,012
f)	Finished goods	$34,732
	Work in process		$34,732
g)	Accounts receivable	$34,530
	Sales		$34,530
	COGS	$22,266
	Finished goods		$22,266

____________________________________________________________

WIP
b)	$50,390	f)	$34,732
e)	$12,012
End. Bal.	$27,670
Finished goods
f)	$34,732	g)	$22,266
End. Bal.	$12,466

________________________________________________

Schedule of unfinished jobs
Job	Direct materials	Direct Labor	Applied Overhead	Total Cost
304	$8,290	$6,880	[$52 * 73] = $3796	$18,966
306	$3,890	$3,410	[$52 * 27] = $1404	$8,704
Total				$27,670

Schedule of finished jobs
Job	Direct materials	Direct Labor	Applied Overhead	Total Cost
305	$5,000	$5,490	[$52 * 38] = $1976	$12,466
Total				$12,466