Exercise 16-2 Stine Company uses a job order cost system. On May 1, the company

Question

Exercise 16-2 Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,970 and two jobs in process: Job No. 429 $2,220, and Job No. 430 $1,750. During May, a summary of source documents reveals the following. Materials Labor Time Ticket Job Number 429 430 431 General use Requisition Sli $2,620 3,720 4,870 $2,080 3,130 $11,2107550 7,880 $13,090 1,480 $14,570 990 $12,200 Stine Company applies manufacturing overhead to jobs at an overhead rate of 62% of direct labor cost. Job No. 429 is completed during the month.

Explanation / Answer

Solution :

Journal Entries - Stine Company S. no. Date Particulars Debit Credit 1 31-May Work in process inventory Dr $11,210.00 Manufacturing overehead Dr $990.00               To Raw materials inventory $12,200.00 (To record consumption of material) 2 31-May Work in process inventory Dr $13,090.00 Manufacturing overehead Dr $1,480.00               To Factory labor $14,570.00 (To assign labor cost in production) 3 31-May Work in process inventory Dr $8,116.00               To Manufacturing overhead $8,116.00 (To apply manufacturing overhead on production) 4 31-May Finished goods inventory Dr ($2,220 + $2,620 + $2,080 + $2,080*62%) $8,210.00               To Work in process inventory $8,210.00 (To record completion of Job 429)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.