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Knox Company begins operations January 1...
This question was answered on Oct 09, 2013. View the Answer
Knox Company begins operations January 1. Because all work is done to customer specifications, the company decides to use a job order cost system. Prepare a flow chart of a typical job order system with arrows showing the flow of costs. Identify the eight transactions.

During January, its first month of operations, Knox Company accumulated the following 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. Prepare journal entries for each type of manufacturing cost.

In January, Knox Company requisitions raw materials for production as follows: job 1 $900, job 2 $1400, job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used.
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KnoxCompanybeginsoperationsJanuary1.Becauseallworkisdonetocustomer
specifications,thecompanydecidestouseajobordercostsystem.Prepareaflowchartofa...

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