Kurtz Fencing Inc. uses a job order cost system. The following data summarize th

Question

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, $31,250 b. Materials requisitioned and factory labor used Job 301 302 303 304 305 306 For general factory use Materials Factory Labor $2,910 3,730 2,280 8,430 4,850 3,900 1,050 $2,680 3,630 1,810 7,110 5,010 3,280 3,920 c. Factory overhead costs incurred on account, $5,760 d. Depreciation of machinery and equipment, $2,040

Explanation / Answer

Factory overhead total Materials labor applied Job 301 2,910 2,680 1485 7,075 job 302 3,730 3,630 2090 9,450 job 303 2,280 1,810 1650 5,740 job 304 8,430 7,110 3960 19,500 job 305 4,850 5,010 2255 12,115 job 306 3,900 3,280 1375 8,555 total 26,100 23,520 12815 62,435 1) Journal Entries Accounting titles & Explanations Debit Credit a) Raw materials inventory 31,250 Accounts payable 31,250 b) work in process inventory 49,620 Raw materials inventory 26,100 Factory wages payable 23,520 c) Factory overhead 5,760 Accounts payable 5,760 d) Factory overhead 2,040 Accumulated depreciation 2,040 e) Work in process inventory 12,815 Factory overhead 12,815 f) finished goods inventory 34,380 work in process inventory 34,380 g) Accounts receivable (8390+10860+15380) 34630 Sales 34,630 Cost of goods sold (7075+9450+5740) 22265 finished goods inventory 22,265 2) Work in process inventory b) 26,100 f) 34,380 b) 23,520 e)        12,815 end balance        28,055 Finished goods inventory f) 34,380 g) 22,265 End bal 12,115 3) Schedule of Work in process account job Direct Direct overhead total materials labor applied job 304 8,430 7,110 3960 19,500 job 306 3,900 3,280 1375 8,555 total 12,330 10,390 5335 28,055 4) Schedule of finished goods inventory job Direct Direct overhead total materials labor applied job 305 4,850 5,010 2255 12,115

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