Complete the Inventory and Overhead T-Accounts For Job 1 and Job 2 and Job 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
Complete the Inventory and

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.

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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