Reference no: EM131815630
Problem - Krall Company uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:
a. Materials purchased on account, $105,000
b. Materials requisitioned and factory labor used:
Job No. Materials Factory Labor
101 $13,800 $13,875
102 16,500 20,100
103 9,600 10,000
104 27,300 26,100
105 12,900 11,100
106 12,800 13,350
For general factory use 6,150 14,400
c. Factory overhead cost incurred on account $4,125.
d. Depreciation of machinery and equipment $2,800.
e. The factory overhead rate is $38 per machine hour. Machine hours used.
Job Machine Hours
101 110
102 114
103 90
104 170
105 114
106 124
Total 722
f. Jobs completed: 101,102, 103, and 105.
g. Jobs were shipped and customers were billed as follows: Job 101, $39,200: Job 102, $50,400: Job 105, $35,400
Instructions -
1. Journalize the entries to record the summarized operations.
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as dates. Insert memo account balances as of the end of the month.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.