Entries and schedules for unfinished jobs and completed jobs Instructions Chart of Accounts Amount Descriptions Journal T Accounts Schedule of Unfinished Jobs Schedule of Completed Jobs Instructions Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations: a. Materials purchased on account, $45,000. b. Materials requisitioned and factory labor used: JobMaterialsFactory Labor301$ 1,850$2,5003023,1507,2203032,2005,3503041,8002,4003054,2306,2253061,7702,900For general factory use1,2005,000 c. Factory overhead costs incurred on account, $1,800. d. Depreciation of machinery and equipment, $2,500. e. The factory overhead rate is $30 per machine hour. Machine hours used: JobMachine Hours301303026030341304633057030636Total300 f. Jobs completed: 301, 302, 303, and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,500; Job 302, $16,150; Job 303, $13,400. Required:1. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on March 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. For grading purposes enter transactions in alphabetical order. 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.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.* *Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Entries and schedules for unfinished jobs and completed jobs
Instructions Chart of Accounts Amount Descriptions Journal T Accounts Schedule of Unfinished Jobs Schedule of Completed Jobs
Instructions
Kurtz Fencing Inc. uses a
a. Materials purchased on account, $45,000.
b. Materials requisitioned and factory labor used:
Job
Materials
Factory Labor
301
$ 1,850
$2,500
302
3,150
7,220
303
2,200
5,350
304
1,800
2,400
305
4,230
6,225
306
1,770
2,900
For general factory use
1,200
5,000
c.
d.
e. The factory overhead rate is $30 per machine hour. Machine hours used:
Job
Machine Hours
301
30
302
60
303
41
304
63
305
70
306
36
Total
300
f. Jobs completed: 301, 302, 303, and 305.
g. Jobs were shipped and customers were billed as follows: Job 301, $8,500; Job 302, $16,150; Job 303, $13,400.
Required:
1.
2.
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.*
*Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.
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