Stine Company uses a job order cost system. On May 1, the company has a balance
ID: 2329288 • Letter: S
Question
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $ 4,130 and two jobs in process: Job No. 429 $ 2,370, and Job No. 430 $ 1,760. During May, a summary of source documents reveals the following.
Job Number
Materials
Requisition Slips
Labor Time
Tickets
429
430
431
General use
Stine Company applies manufacturing overhead to jobs at an overhead rate of 69% of direct labor cost. Job No. 429 is completed during the month.
Correct answer iconYour answer is correct.
Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
No.
Date
Account Titles and Explanation
Debit
Credit
(1)
May 31
enter an account title to record the requisition slips
enter a debit amount
enter a credit amount
enter an account title to record the requisition slips
enter a debit amount
enter a credit amount
enter an account title to record the requisition slips
enter a debit amount
enter a credit amount
(2)
31
enter an account title to record the time tickets
enter a debit amount
enter a credit amount
enter an account title to record the time tickets
enter a debit amount
enter a credit amount
enter an account title to record the time tickets
enter a debit amount
enter a credit amount
(3)
31
enter an account title to record the assignment of manufacturing overhead to jobs
enter a debit amount
enter a credit amount
enter an account title to record the assignment of manufacturing overhead to jobs
enter a debit amount
enter a credit amount
(4)
31
enter an account title to record the completion of Job No. 429
enter a debit amount
enter a credit amount
enter an account title to record the completion of Job No. 429
enter a debit amount
enter a credit amount
eTextbook and Media
List of Accounts
Partially correct answer iconYour answer is partially correct.
Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.(Post entries in the order of journal entries presented in the previous part. Round answers to 0 decimal places, e.g. 5,275.)
choose a transaction datechoose a transaction date May 31May 1 BalanceMay 31 Balance
choose a transaction datechoose a transaction date May 31 BalanceMay 31May 1 Balance
choose a transaction datechoose a transaction date May 1 BalanceMay 31 BalanceMay 31
choose a transaction datechoose a transaction date May 31 BalanceMay 1 BalanceMay 31
choose a transaction datechoose a transaction date May 1 BalanceMay 31May 31 Balance
choose a transaction datechoose a transaction date May 31 BalanceMay 1 BalanceMay 31
choose a transaction datechoose a transaction date May 31 BalanceMay 31May 1 Balance
choose a transaction datechoose a transaction date May 31 BalanceMay 1 BalanceMay 31
choose the end date of the accounting periodchoose the end date of the accounting period May 31May 1 BalanceMay 31 Balance
choose the end date of the accounting periodchoose the end date of the accounting period May 31 BalanceMay 31May 1 Balance
Job Cost Sheets
Job
No.
Beginning Work
in Process
Direct
Material
Direct
Labor
Manufacturing
Overhead
Total
430
$ enter a dollar amount
$ enter a dollar amount
$ enter a dollar amount
$ enter a dollar amount
$ enter a dollar amount
431
enter a dollar amount
enter a dollar amount
enter a dollar amount
enter a dollar amount
enter a dollar amount
$ enter a total amount
$ enter a total amount
$ enter a total amount
$ enter a total amount
$ enter a total amount
Job Number
Materials
Requisition Slips
Labor Time
Tickets
429
$ 3,090 $ 2,080430
3,960 3,310431
4,820 $ 11,870 8,180 $ 13,570General use
960 1,320 $ 12,830 $ 14,890Explanation / Answer
Solution:
Journal Entries - Stine company Event Date Particulars Debit Credit 1 31-May Work in process inventory Dr $11,870.00 Manufacturing overhead Dr $960.00 To Material inventory $12,830.00 (To record direct and indirect material issued) 2 31-May Work in process inventory Dr $13,570.00 Manufacturing overhead Dr $1,320.00 To Factoy labor $14,890.00 (To distribute factory labor cost incurred) 3 31-May Work in process inventory Dr ($13,570*69%) $9,363.00 To Manufacturing overhead $9,363.00 (To record application of overhead to production) 4 31-May Finished goods inventory Dr $8,975.00 To Work In Process inventory $8,975.00 (To record completion of Job 429)Related Questions
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