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 Raw Materials Work in Process Finished Goods $18,700 $11,500 $ $15,200 $9,200 $ $22,800 $13,800 $ $ $5,650 ? Job 107 $46,600 ? $96,000 0 0 0 0 $9,300 $ 25,700 $7,100 $ 12,200 ? ? 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.

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Chapter1: Financial Statements And Business Decisions
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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
$18,700 $11,500 $
$15,200 $ 9,200 $
$22,800 $13,800 $
0
0
0
$
0 $9,300 $ 25,700
$ 5,650 $ 7,100 $ 12,200
?
?
?
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:
$46,600
?
$96,000
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.
Transcribed Image Text: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 $18,700 $11,500 $ $15,200 $ 9,200 $ $22,800 $13,800 $ 0 0 0 $ 0 $9,300 $ 25,700 $ 5,650 $ 7,100 $ 12,200 ? ? ? 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: $46,600 ? $96,000 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.
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