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Done to customer specifications, the company decides to use a job
$ 15.00

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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