Please complete all. Exercise 15-2 Stine Company uses a job order cost system. O

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Please complete all.

Exercise 15-2 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. 4. $1,750. During May, a summary of source documents reveals the following 30 Materials Labor Time Job Number Requisition Slips Tickets 429 $3,030 $2,500 3,620 3,510 430 431 4,880 11,530 8,070 $14,080 General use 1,640 964 $12,494 $15,720 completed during the labor cost. Job No. 429 is Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of dire 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 work in Process Inventory Manufacturing Overhead Raw Materials Inventory (ii) 31 Work in Process Inventory Manufacturing Overhead

Explanation / Answer

Journal Entries

No.

Date

Account titles and explanation

Debit

Credit

(i)

31-May

Work in process Inventory

$        11,530

Manufacturing Overhead

$              964

Raw Materials Inventory

$                                    12,494

(ii)

31-May

Work in process Inventory

$        14,080

Manufacturing Overhead

$          1,640

Factory Labor

$                                    15,720

(iii)

31-May

Work in process Inventory

$          8,448

Manufacturing Overhead

$                                      8,448

(iv)

31-May

Finished Goods Inventory*

$          9,250

Work in process Inventory

$                                      9,250

*Finished Goods Inventory=3970+3030+2500+(2500*60%)

*Finished Goods Inventory=9250

Work-in process Inventory

1-May Balance

$                                          3,970

May-31 Balance

$          9,250

31-May

$                                        11,530

31-May

$                                        14,080

31-May

$                                          8,448

31-May Balance

$                                        28,778

Job Cost Sheet

Job No.

Beginning Work-in progess

Direct Material

Direct Labor

Manufacturing Overhead

Total

430

$                                          1,750

$                                         3,620

$          3,510

$                                 2,106

$    10,986

431

$                                          4,880

$          8,070

$                                  4,842

$    17,792

$    28,778

Journal Entries

No.

Date

Account titles and explanation

Debit

Credit

(i)

31-May

Work in process Inventory

$        11,530

Manufacturing Overhead

$              964

Raw Materials Inventory

$                                    12,494

(ii)

31-May

Work in process Inventory

$        14,080

Manufacturing Overhead

$          1,640

Factory Labor

$                                    15,720

(iii)

31-May

Work in process Inventory

$          8,448

Manufacturing Overhead

$                                      8,448

(iv)

31-May

Finished Goods Inventory*

$          9,250

Work in process Inventory

$                                      9,250

*Finished Goods Inventory=3970+3030+2500+(2500*60%)

*Finished Goods Inventory=9250

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