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Kenworth Company uses a job-order costing system. Only three jobsJob 105, Job 106, and Job 107were 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: Job Cost Sheet Job 105 Job 106 Job 107 November costs incurred: Direct materials Direct labour Manufacturing overhead December costs incurred: Direct materials Direct labour Manufacturing overhead $17,300 $10,100 $ $13,800 $ 7,800 $ $22,080 $12,480 $ 0 9 $ 0 $ 8,600 $ 4,600 $ 6,400 ? ? $ 22,900 $ 10,800 ? 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: Raw Materials Work in Process Finished Goods $42,400 ? $89,000 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. Raw Materials Work in Process Beg. Bal. 42,400 Beg. Bal. End. Bal. 42,400 End. Bal. Manufacturing Overhead Finished Goods 89,000 Beg. Bal. Beg. Bal. End. Bal. 89,000 End. Bal Salaries & Wages Payable Accounts Payable Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 3-a. What apparent predetermined overhead rate does the company use to assign overhead cost to jobs? Predetermined overhead rate % 3-b. Prepare a journal entry to record the application of overhead cost to jobs for December (it is not necessary to make a separate entry for each job). Post this entry to the appropriate T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

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