Stine Company uses a job order cost system. On May 1, the company has a balance

Question

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,960 and two jobs in process: Job No. 429 $2,300, and Job No. 430 $1,660. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 $2,780 $2,420 430 3,870 3,460 431 4,590 $11,240 8,150 $14,030 General use 939 1,620 $12,179 $15,650 Stine Company applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 429 is completed during the month. Prepare summary journal entries to record (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (i) May 31 (ii) 31 (iii) 31 (iv) 31 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 question.) Work in Process Inventory Job Cost Sheets Job No. Beginning Work in Process Direct Material Direct Labor Manufacturing Overhead Total 430 $ $ $ $ $ 431 $ $ $ $ $

Explanation / Answer

Stine Company Material Labour Job No. Requisition Slip Time Tickets 429 $                                   2,780.00 $        2,420.00 430 $                                   3,870.00 $        3,460.00 431 $                                   4,590.00 $        8,150.00 $                                 11,240.00 $      14,030.00 General Use $                                       939.00 $        1,620.00 Total $                                 12,179.00 $      15,650.00 JOURNAL ENTRIES Date Particular Debit Credit 31-May Work in process Inventory $      11,240.00 Manufacturing Overhead $            939.00    To Raw Material $ 12,179.00 31-May Work in Process Inventory $      14,030.00 Manufacturing Overhead $        1,620.00    To Factory Labour $ 15,650.00 31-May Work in Process Inventory $        9,821.00 Manufacturing Overhead $    9,821.00 (14030*70%) 31-May Finished goods inventory $        9,194.00 Work in Process Inventory $    9,194.00 (2300+2780+2420+(2420*70%) Work in Process Inventory Account Date Particular Amount Date Particular Amount 1-May Opening Balance $        3,960.00 31-May Finished Goods $       9,194.00 31-May Raw Material $      11,240.00 31-May Balance $ 29,857.00 31-May Factory Overhead $      14,030.00 31-May Manufacturing Overhead $        9,821.00 Total $      39,051.00 Total $    39,051.00 JOB COST SHEET JOB Opening WIP Direct Material Direct Labour Manufacturing Overhead Total 430 1660 $        3,870.00 $    3,460.00 $                              2,422.00 11412 431 $        4,590.00 $    8,150.00 $                              5,705.00 18445 Total 1660 8460 11610 8127 29857

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