Question - The Kearney Company uses a job order cost system. The following information relates to September 2007. The companies accounting year does not end until December 31.
a. materials purchased, $150,000.
b. direct materials issued to production, $96,000.
c. direct labor incurred, $78,000.
d. salaries paid to workers, $75,000 (assume no withholdings or taxes).
e. manufacturing overhead is applied to production on the basis of $4.00 per direct labor hour. There were 13,000 direct labor hours incurred during September.
f. total manufacturing overhead for the month was $54,000.
g. production orders costing $200,000 were completed during the month of September.
h. production orders costing $190,000 were shipped and invoices during the month, at a profit of 20 percent based on cost.
The beginning inventory of work in process was $20,000.
a. Prepare the journal entries required to record the above information.
b. What is the ending balance (September 30) in the work in process account?