stine company uses a job order cost system. on may 1, the company has a balance
ID: 2347914 • 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 $3500 and two jobs in process: Job no. 429 - $200 and job no. 430 - $1500During may, a summary of source documents reveals the following:
JOB NUMBER MATERIALS REQUISITION SLIPS LABOR TIME TICKETS
429 $2500 $1900
430 $3500 $3000
431 $4400 $7600
_____ $10400 ______ $12500
General use $800 $1200
_____ ______
$11200 $13700
Stine company applies manufacturing overheard to jobs at an overhead rate of 60% of direct labor costs. Job no. 429 is completed during this month.
PREPARE SUMMARY JOURNAL ENTRIES TO RECORD: REQUISITION SLIPS, TIME TICKETS, ASSIGNMENT OF MANUFACTURING OVERHEAD TO JOBS AND COMPLETION OF JOB NO 429
POST THE ENTRIES TO WORK IN PROCESS INVENTORY, AND PROVE THE AGREEMENT OF THE CONTROL ACCOUNT WITH THE JOB COST SHEETS. (USE A T ACCOUNT).
Explanation / Answer
Work in process inventory 10400 manufacturing overhead 800 raw materials inventory 11200 Work in process inventory 12500 manufacturing overhead 1200 raw materials inventory 13700 Work in process inventory 7500 manufacturing overhead 7500 Finished goods inventory 200+2500+1900+0.6*1900 5740 May 1 balance 3200 may 31 5740 31 10400 12500 10000 May 31 balance 28180
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.