Question :
Knox Company starts operations January 1. Because all work is done to customer specifications, the company chooses to use a job order cost system. Purpose a flow chart of a typical job order system with arrows indicating the flow of costs. Check the eight transactions.
During January, its first month of operations, Knox Company accumulated the subsequent manufacturing costs: raw materials $4000 on account, factory labor $6000 of which $5200 relates to factory wages payable and $800 relates to payroll taxes payable and utilities payable $2000. Purpose journal entries for each kind of manufacturing cost.
In January, Knox Company requisitions raw materials for production as follows: job 1 $900, job 2 $1400, job 3 $700, and common factory use $600. Purpose a summary journal entry to record raw materials used.