Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:
a Materials purchased on account, $
b Materials requisitioned and factory labor used:
Job; Materials;Factory Labor
; $; $
; ;
; ;
; ;
; ;
; ;
For general factory use ;
c Factory overhead costs incurred on account, $
d Depreciation of factory machinery and equipment, $
e The factory overhead rate is $ per machine hour. Machine hours used:
Job ;Machine Hours
;
;
;
;
;
;
Total ;
f Jobs completed: and
g Jobs were shipped and customers were billed as follows: Job $; Job $; Job $
Required:
Journalize the entries to record the summarized operations. Record each item items af as an individual entry on January Record item g as entries. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.
Prepare a schedule of unfinished jobs to support the balance in the work in process account.
Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.
