Kurtz Fencing Inc. uses a job order cost system. The followingdata summarize the operations related to production for March, thefirst month of operations:
| a. Materials purchased on account,$28,610. |
| b. Materials requisitioned andfactory labor used: |
| Job | Materials | Factory Labor |
| 301 | $2,810 | $2,640 |
| 302 | 3,710 | 3,920 |
| 303 | 2,340 | 1,910 |
| 304 | 8,210 | 7,110 |
| 305 | 5,360 | 5,270 |
| 306 | 3,780 | 3,390 |
| For general factory use | 1,060 | 4,040 |
| c. Factory overhead costs incurredon account, $5,710. |
| d. Depreciation of machinery andequipment, $1,910. |
| e. The factory overhead rate is $55per machine hour. Machine hours used: |
| Job | Machine Hours |
| 301 | 24 |
| 302 | 36 |
| 303 | 29 |
| 304 | 73 |
| 305 | 41 |
| 306 | 24 |
| Total | 227 |
| f. Jobs completed: 301, 302, 303and 305. |
| g. Jobs were shipped and customerswere billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303,$15,650. |
| Required: |
| 1. | Journalize the entries torecord the summarized operations. Record each item (items a-f) asan individual entry on March 31. Record item g as 2 entries. Referto the Chart of Accounts for exact wording of accounttitles. |
| 2. | Post the appropriate entries toT accounts for Work in Process and Finished Goods, using theidentifying letters as transaction codes. Insert memo accountbalances as of the end of the month. For grading purposes entertransactions in alphabetical order. Determine the correct endingbalance. The ending balance label is provided on the left side ofthe T account even when the ending balance is a credit. The unusedcell on the balance line should be left blank. |
| 3. | Prepare a schedule ofunfinished jobs to support the balance in the work in processaccount.* |
| 4. | Prepare a schedule of completedjobs on hand to support the balance in the finished goodsaccount.* | *Refer to the list of AmountDescriptions for the exact wording of the answer choices for textentries. |
|
Chart of Accounts
| CHARTOF ACCOUNTS |
| KurtzFencing Inc. |
| General Ledger |
| ASSETS | | 110 | Cash | | 121 | Accounts Receivable | | 125 | Notes Receivable | | 126 | Interest Receivable | | 131 | Materials | | 132 | Work in Process | | 133 | Factory Overhead | | 134 | Finished Goods | | 141 | Supplies | | 142 | Prepaid Insurance | | 143 | Prepaid Expenses | | 181 | Land | | 191 | Machinery and Equipment | | 192 | Accumulated Depreciation-Machineryand Equipment | | LIABILITIES | | 210 | Accounts Payable | | 221 | Utilities Payable | | 231 | Notes Payable | | 236 | Interest Payable | | 241 | Lease Payable | | 251 | Wages Payable | | 252 | Consultant Fees Payable | | EQUITY | | 311 | Common Stock | | 340 | Retained Earnings | | 351 | Dividends | | 390 | Income Summary | | | REVENUE | | 410 | Sales | | 610 | Interest Revenue | | EXPENSES | | 510 | Cost of Goods Sold | | 520 | Wages Expense | | 531 | Selling Expenses | | 532 | Insurance Expense | | 533 | Utilities Expense | | 534 | Office Supplies Expense | | 540 | Administrative Expenses | | 561 | Depreciation Expense-Machinery andEquipment | | 590 | Miscellaneous Expense | | 710 | Interest Expense | |
Amount Descriptions
| AmountDescriptions | |
| Balance of Work in Process, January30 | |
| Finished Goods, January 30 (Job305) | |
| Job No. 301 | |
| Job No. 302 | |
| Job No. 303 | |
| Job No. 304 | |
| Job No. 305 | |
| Job No. 306 | |
Journal
Shaded cells have feedback.
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 forexact wording of account titles.
All transactions on this page must be entered (except for postref(s)) before you will receive Check My Work feedback.
PAGE 10
JOURNAL
Score: 117/225
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT |
1 | | | | | |
2 | | | | | |
3 | | | | | |
4 | | | | | |
5 | | | | | |
6 | | | | | |
7 | | | | | |
8 | | | | | |
9 | | | | | |
10 | | | | | |
11 | | | | | |
12 | | | | | |
13 | | | | | |
14 | | | | | |
15 | | | | | |
16 | | | | | |
17 | | | | | |
18 | | | | | |
Materials are recorded in the Materials Inventory account untilrequisitioned.
All direct costs: materials and labor are recorded in the Workin Process account.
All indirect costs are considered as overhead and are recordedin the Factory Overhead account.
Overhead is applied to Work in Process using a predeterminedoverhead rate.
The cost of completed jobs should be moved to the Finished Goodsaccount.
The cost of sold jobs should be moved to the Cost of Goods Soldaccount.
T Accounts
Shaded cells have feedback.
2. Post the appropriate entries to T accounts for Work inProcess and Finished Goods, using the identifying letters astransaction codes. Insert memo account balances as of the end ofthe month. For grading purposes enter transactions in alphabeticalorder. Determine the correct ending balance. The ending balancelabel is provided on the left side of the T account even when theending balance is a credit. The unused cell on the balance lineshould be left blank.
| Work in Process |
| b | | f | |
| e | | | |
| Bal. | | | |
Points:
6 / 12
Feedback
Check My Work
Post entries to the Work in Process T account and to theFinished Goods T account.
Schedule of Unfinished Jobs
Shaded cells have feedback.
3. Prepare a schedule of unfinished jobs to support the balancein the work in process account. Refer to the list of AmountDescriptions for the exact wording of the answer choices for textentries.
Question not attempted.
Score: 0/51
Kurtz Fencing Inc. |
Schedule of Unfinished Jobs |
1 | Job | Direct Materials | Direct Labor | Factory Overhead | Total |
2 | | | | | |
3 | | | | | |
4 | | | | | |
Points:
0 / 12
Feedback
Check My Work
Include the direct materials, direct labor, and factory overheadfor each unfinished job.
Schedule of Completed Jobs
Shaded cells have feedback.
4. Prepare a schedule of completed jobs on hand to support thebalance in the finished goods account. Refer to the list of AmountDescriptions for the exact wording of the answer choices for textentries.
Kurtz Fencing Inc. |
Schedule of Completed Jobs |
1 | Job | Direct Materials | Direct Labor | Factory Overhead | Total |
2 | | | | |
