Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Job 106, and Job 107-were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company's operating year. Data from the job cost sheets of the three jobs follow: November costs incurred: Direct materials Direct labour Manufacturing overhead December costs incurred: Direct materials Direct labour Manufacturing overhead Job Cost Sheet Job 105 Job 106 Job 107 Raw Materials Work in Process Finished Goods $18,500 $11,300 $ $15,000 $9,000 $ $22,500 $13,500 $ $ 0 $ 9,200 $25,300 $ 5,500 $7,000 $12,000 ? $46,000 $95,000 000 ? ? 0 The following additional information is available: a. Manufacturing overhead is applied to jobs on the basis of direct labour cost. b. Balances in the inventory accounts at November 30 were as follows: ? Required: 1. Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead. Enter the November 30 inventory balances given above; in the case of Work in Process, compute the November 30 balance and enter it into the Work in Process T-account.

Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Job 106, and Job 107-were worked on during November and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, the end of the company's operating year. Data from the job cost sheets of the three jobs follow: November costs incurred: Direct materials Direct labour Manufacturing overhead December costs incurred: Direct materials Direct labour Manufacturing overhead Job Cost Sheet Job 105 Job 106 Job 107 Raw Materials Work in Process Finished Goods $18,500 $11,300 $ $15,000 $9,000 $ $22,500 $13,500 $ $ 0 $ 9,200 $25,300 $ 5,500 $7,000 $12,000 ? $46,000 $95,000 000 ? ? 0 The following additional information is available: a. Manufacturing overhead is applied to jobs on the basis of direct labour cost. b. Balances in the inventory accounts at November 30 were as follows: ? Required: 1. Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead. Enter the November 30 inventory balances given above; in the case of Work in Process, compute the November 30 balance and enter it into the Work in Process T-account.

Name: Kenworth Company uses a job-order costing system. Only three jobs-Job
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Description: Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Job 106, and Job 107-were worked on duringNovember and December. Job 105 was completed on December 10; the other two jobs were still in production on December 31, theend of t

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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