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Complete the Inventory and Overhead T-Accounts For Job 1 and Job 2 and Job 3

Complete the Inventory and Overhead T-Accounts For Job 1 and Job 2 and Job 3

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete the Inventory and Overhead T-Accounts For Job 1 and Job 2 and Job 3

Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: 6,000 units for Job 1 @ $10/unit 5,500 units for Job 2 @ $15/unit 12,300 units for Job 3 @ $5/unit Requisitioned materials for production: 5,000 units for Job 1 @ $10/unit 4,000 units for Job 2 @ $15/unit 10,000 unit for Job 3 @ $5/unit Direct labor costs: 2,000 hours of direct labor on Job 1 at $15 per hour 10,000 hours of direct labor on Job 2 at $14 per hour 8,000 hours of direct labor on Job 3 at $20 per hour Total factory overhead costs for the month: • $70,000 of indirect materials $115,000 of indirect labor $97,000 of utilities costs $18,000 of factory depreciation Production data: Job 1 produced 5,000 units out of an estimated possible 8,000 units, Job 2 produced 20,000 units out of an estimated possible 24,000 units Job 3 produced 11,000 units out of an estimated possible 12,100 units, Sales data: Job 1 → 4,000 units sold on credit for $25 unit per Job 2 → 18,000 units sold on credit for $30 per unit Job 3 → 10,000 units sold on credit for $50 реr unit To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets. Helpful Hint: While not required for this assignment, it might be helpful to create the related journal entries.
Transcribed Image Text:Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: 6,000 units for Job 1 @ $10/unit 5,500 units for Job 2 @ $15/unit 12,300 units for Job 3 @ $5/unit Requisitioned materials for production: 5,000 units for Job 1 @ $10/unit 4,000 units for Job 2 @ $15/unit 10,000 unit for Job 3 @ $5/unit Direct labor costs: 2,000 hours of direct labor on Job 1 at $15 per hour 10,000 hours of direct labor on Job 2 at $14 per hour 8,000 hours of direct labor on Job 3 at $20 per hour Total factory overhead costs for the month: • $70,000 of indirect materials $115,000 of indirect labor $97,000 of utilities costs $18,000 of factory depreciation Production data: Job 1 produced 5,000 units out of an estimated possible 8,000 units, Job 2 produced 20,000 units out of an estimated possible 24,000 units Job 3 produced 11,000 units out of an estimated possible 12,100 units, Sales data: Job 1 → 4,000 units sold on credit for $25 unit per Job 2 → 18,000 units sold on credit for $30 per unit Job 3 → 10,000 units sold on credit for $50 реr unit To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets. Helpful Hint: While not required for this assignment, it might be helpful to create the related journal entries.
Inventory and Overhead T-Accounts: Job 1 and Job 2 and Job 3 Raw Materials WIP Finished Goods Overhead
Transcribed Image Text:Inventory and Overhead T-Accounts: Job 1 and Job 2 and Job 3 Raw Materials WIP Finished Goods Overhead
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