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

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.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

T Accounts

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
Bal.

Finished Goods
Bal.

Schedule of Unfinished Jobs

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.

Kurtz Fencing Inc.

Schedule of Unfinished Jobs

1	Job	Direct Materials	Direct Labor	Factory Overhead	Total
2
3
4

Schedule of Completed Jobs

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

			Factory	overhead	total
		Materials	labor	applied
	Job 301	2,810	2,640	1320	6,770
	job 302	3,710	3,920	1980	9,610
	job 303	2,340	1,910	1595	5,845
	job 304	8,210	7,110	4015	19,335
	job 305	5,360	5,270	2255	12,885
	job 306	3,780	3,390	1320	8,490
	total	26,210	24,240	12485	62,935
1)	Journal Entries
	Accounting titles & Explanations				Debit	Credit
a)	Raw materials inventory				45,000
	Accounts payable					45,000
b)	work in process inventory				50,450
	Factory overhead				5,100
	Raw materials inventory					27,270
	Factory wages payable					28,280
c)	Factory overhead				5,710
	Accounts payable					5,710
d)	Factory overhead				1,910
	Accumulated depreciation					1,910
e)	Work in process inventory				12,485
	Factory overhead					12,485
f)	finished goods inventory				35,110
	work in process inventory					34,380
g)	Accounts receivable				34940
	Sales					34,940
	Cost of goods sold				22,225
	finished goods inventory					22,225
2)	Work in process inventory
	b)		26,210	f)		35,110
	b)		24,240
	e)		12,485
	end balance		27,825
	Finished goods inventory
	f)		35,110	g)		22,225
	End bal		12,885
3)	Schedule of Work in process account
	job	Direct	Direct	overhead	total
		materials	labor	applied
	job 304	8,210	7,110	4015	19,335
	job 306	3,780	3,390	1320	8,490
	total	11,990	10,500	5335	27,825
4)	Schedule of finished goods inventory
	job	Direct	Direct	overhead	total
		materials	labor	applied
	job 305	5,360	5,270	2255	12,885