Kenworth Company uses a joborder costing system Only three j

Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Job 106, and Job 107- were 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 Man $17,300 $10,100S 0 $13,800 7,800 $0 $22,080 $12,480 0 ing overhead December costs incurred: Direct materials Direct labour $ 0 8,600 $22,900 $ 4,600 6,400 $10,800 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: $42,400 Finished Goods $89,000 1. Prepare T s 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 30

Solution

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	Job 105 A	Job 106 B	Job 107 C	WIP (A+B+C)
November
Direct material	$17,300	10100	0	$27,400
Direct Labor	13800	7800	0	$21,600
Manufacturing overhead	22080	12480	0	$34,560
Total of November	$53,180	$30,380	$0	$83,560
December
Direct material	0	8600	22900	$31,500
Direct Labor D	4600	6400	10800	$21,800
Manufacturing overhead D*1.6	7360	10240	17280	$34,880
Total of December	11960	25240	50980	$88,180