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, $28,610.
	b. Materials requisitioned and factory 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 incurred on account, $5,710.
	d. Depreciation of machinery and equipment, $1,910.
	e. The factory overhead rate is $55 per 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, 303 and 305.
	g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650.

	Required:
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 exact wording of account titles.
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 for the exact wording of the answer choices for text entries.

Chart of Accounts

CHART OF ACCOUNTS
Kurtz Fencing 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-Machinery and 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 and Equipment 590 Miscellaneous Expense 710 Interest Expense

Amount Descriptions

Amount Descriptions
Balance of Work in Process, January 30
Finished Goods, January 30 (Job 305)
Job No. 301
Job No. 302
Job No. 303
Job No. 304
Job No. 305
Job No. 306

Journal

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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 exact wording of account titles.

All transactions on this page must be entered (except for post ref(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 until requisitioned.

All direct costs: materials and labor are recorded in the Work in Process account.

All indirect costs are considered as overhead and are recorded in the Factory Overhead account.

Overhead is applied to Work in Process using a predetermined overhead rate.

The cost of completed jobs should be moved to the Finished Goods account.

The cost of sold jobs should be moved to the Cost of Goods Sold account.

T Accounts

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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.

Work in Process
b		f
e
Bal.

Finished Goods
f		g
Bal.

Points:

6 / 12

Feedback

Check My Work

Post entries to the Work in Process T account and to the Finished Goods T account.

Schedule of Unfinished Jobs

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3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.

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 overhead for each unfinished job.

Schedule of Completed Jobs

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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 for the exact wording of the answer choices for text entries.

Kurtz Fencing Inc.

Schedule of Completed Jobs

1	Job	Direct Materials	Direct Labor	Factory Overhead	Total
2

Answer 1

1	Date	Description	Post. Ref.	Debit	Credit
1	Mar. 31 a.	Materials		28610
2		Accounts payable			28610
3	Mar. 31 b.	Work in process		50450
4		Factory overhead		5100
5		Materials			27270
6		Wages payable			28280
7	Mar. 31 c.	Factory overhead		5710
8		Accounts payable			5710
9	Mar. 31 d.	Factory overhead		1910
10		Accumulated depreciation-machinery and equipment			1910
11	Mar. 31 e.	Work in process		12485
12		Factory overhead ($55 x 227)			12485
13	Mar. 31 f.	Finished goods		35110
14		Work in process			35110
15	Mar. 31 g1.	Accounts receivable		34940
16		Sales revenue			34940
17	Mar. 31 g2.	Cost of goods sold		22225
18		Finished goods			22225

2.

Work in Process
b.	50450	f.	35110
e.	12485
Bal.	27825
Finished Goods
f.	35110	g.	22225
Bal.	12885

3	Kurtz Fencing Inc.
	Schedule of Unfinished Jobs
	1	Job	Direct Materials	Direct Labor	Factory Overhead	Total
	2	304	8210	7110	4015	19335
	3	306	3780	3390	1320	8490
	4	Total	11990	10500	5335	27825
4	Kurtz Fencing Inc.
	Schedule of Completed Jobs
	1	Job	Direct Materials	Direct Labor	Factory Overhead	Total
	2	305	5360	5270	2255	12885