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 per unit • Job 2 → 18,000 units sold on credit for $30 per unit • Job 3 → 10,000 units sold on credit for $50 per 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.

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Chapter1: Financial Statements And Business Decisions
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Cost Flow Summary #1
Job 1
Job 2
Job 3
Direct Materials
Direct Labor
Factory OH
Total Costs
Total units to be produced
Cost per Unit
Finished Goods (Units)
Finished Goods (Dollars)
Cost Flow Summary #2
Job 1
Job 2
Job 3
Sales Revenue
Cost of Goods Sold
Gross Profit
Gross Profit Percentage
Transcribed Image Text:Cost Flow Summary #1 Job 1 Job 2 Job 3 Direct Materials Direct Labor Factory OH Total Costs Total units to be produced Cost per Unit Finished Goods (Units) Finished Goods (Dollars) Cost Flow Summary #2 Job 1 Job 2 Job 3 Sales Revenue Cost of Goods Sold Gross Profit Gross Profit Percentage
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 per unit
• Job 2 → 18,000 units sold on credit for $30 per unit
• Job 3 → 10,000 units sold on credit for $50 per 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 per unit • Job 2 → 18,000 units sold on credit for $30 per unit • Job 3 → 10,000 units sold on credit for $50 per 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.
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