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, $28,610. b. Materials requisitioned and factory labor used: JobMaterialsFactory Labor301$2,810$2,6403023,7103,9203032,3401,9103048,2107,1103055,3605,2703063,7803,390For general factory use1,0604,040 c. Factory overhead costs incurred on account, $5,710. d. Depreciation of machinery and equipment, $1,910. e. The factory overhead rate is $55 per machine hour. Machine hours used: JobMachine Hours301243023630329304733054130624Total227 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650. 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.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 provided for the exact wording of the answer choices for text entries.CHART OF ACCOUNTSKurtz Fencing Inc.General Ledger ASSETS110Cash121Accounts Receivable125Notes Receivable126Interest Receivable131Materials132Work in Process133Factory Overhead134Finished Goods141Supplies142Prepaid Insurance143Prepaid Expenses181Land191Machinery and Equipment192Accumulated Depreciation-Machinery and Equipment LIABILITIES210Accounts Payable221Utilities Payable231Notes Payable236Interest Payable241Lease Payable251Wages Payable252Consultant Fees Payable EQUITY311Common Stock340Retained Earnings351Dividends390Income Summary REVENUE410Sales610Interest Revenue EXPENSES 510Cost of Goods Sold 520Wages Expense 531Selling Expenses 532Insurance Expense 533Utilities Expense 534Office Supplies Expense 540Administrative Expenses 561Depreciation Expense-Machinery and Equipment 590Miscellaneous Expense 710Amount Descriptions Balance of Work in Process, March 31 Finished Goods, March 31 (Job 305) Job No. 301 Job No. 302 Job No. 303 Job No. 304 Job No. 305 Job No. 3061. 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.PAGE 10 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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.Work in Process Bal. Finished Goods Bal. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Kurtz Fencing Inc.Schedule of Unfinished Jobs1JobDirect MaterialsDirect LaborFactory OverheadTotal2 3 4

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Description: 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, $28,610. b. Materials requisitioned and factory labor used

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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, $28,610. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,810 $2,640 302 3,710 3,920 303 2,340 1,910 304 8,210 7,110 305 5,360 5,270 306 3,780 3,390 For general factory use 1,060 4,040 c. Factory overhead costs incurred on account, $5,710. d. Depreciation of machinery and equipment, $1,910. e. The factory overhead rate is $55 per machine hour. Machine hours used: Job Machine Hours 301 24 302 36 303 29 304 73 305 41 306 24 Total 227 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650. 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 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 provided for the exact wording of the answer choices for text entries. CHART OF ACCOUNTSKurtz Fencing Inc.Ge

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, $28,610. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,810 $2,640 302 3,710 3,920 303 2,340 1,910 304 8,210 7,110 305 5,360 5,270 306 3,780 3,390 For general factory use 1,060 4,040 c. Factory overhead costs incurred on account, $5,710. d. Depreciation of machinery and equipment, $1,910. e. The factory overhead rate is $55 per machine hour. Machine hours used: Job Machine Hours 301 24 302 36 303 29 304 73 305 41 306 24 Total 227 f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650. 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 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 provided for the exact wording of the answer choices for text entries. CHART OF ACCOUNTSKurtz Fencing Inc.Ge

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 2PA: Entries and schedules for unfinished jobs and completed jobs Kurtz Fencing Inc. uses a job order...

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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, $28,610.
	b. Materials requisitioned and factory labor used:

Job	Materials	Factory Labor
301	$2,810	$2,640
302	3,710	3,920
303	2,340	1,910
304	8,210	7,110
305	5,360	5,270
306	3,780	3,390
For general factory use	1,060	4,040

	c. Factory overhead costs incurred on account, $5,710.
	d. Depreciation of machinery and equipment, $1,910.
	e. The factory overhead rate is $55 per machine hour. Machine hours used:

Job	Machine Hours
301	24
302	36
303	29
304	73
305	41
306	24
Total	227

	f. Jobs completed: 301, 302, 303 and 305.
	g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650.

Required:

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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal 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. 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.

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 provided for the exact wording of the answer choices for text entries.

CHART OF ACCOUNTSKurtz Fencing Inc.General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
132	Work in Process
133	Factory Overhead
134	Finished Goods
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
181	Land
191	Machinery and Equipment
192	Accumulated Depreciation-Machinery and Equipment

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
241	Lease Payable
251	Wages Payable
252	Consultant Fees Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

EXPENSES

510

Cost of Goods Sold

520

Wages Expense

531

Selling Expenses

532

Insurance Expense

533

Utilities Expense

534

Office Supplies Expense

540

Administrative Expenses

561

Depreciation Expense-Machinery and Equipment

590

Miscellaneous Expense

710

Amount Descriptions

Balance of Work in Process, March 31

Finished Goods, March 31 (Job 305)

Job No. 301

Job No. 302

Job No. 303

Job No. 304

Job No. 305

Job No. 306

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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

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.

Work in Process


Bal.

Finished Goods

Bal.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

Kurtz Fencing Inc.

Schedule of Unfinished Jobs

1	Job	Direct Materials	Direct Labor	Factory Overhead	Total
2
3
4

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