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 $3,920 and two jobs in process: Job No. 429 $2,600, and Job No. 430 $1,320. During May, a summary of source documents reveals the following. Materials Requisition Slips Labor Time Tickets Job Number 429 430 431 General use $3,040 4,020 4,740 $2,300 3,430 7,870 $11,800 900 $12,700 $13,600 1,310 $14,910 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

Beginning Direct direct manufacturing total Job WIP materials labor total 429 2,600 3,040 2,300 1426 9366 430 1,320 4,020 3,430 2126.6 10897 431 4740 7870 4879 17489 total 3920 11800 13600 8432 37752 No Date Account titles and explanations Debit Credit 1 31-May Work in process inventory 11,800 factory overhead 900 Raw materials inventory 12,700 2) 31-May Work in process inventory 13,600 factory overhead 1,310 Factory wages payable 14,910 3) 31-May Work in process inventry 8,432 factory overhead 8,432 4) 31-May finished goods 9,366 Work in process inventory 9,366 Work in process ivnentory BB 3,920 1) 11,800 4) 9,366 2) 13,600 3) 8,432 end bal 28,386 Job cost sheets Beginning Direct direct manufacturing total Job WIP materials labor total 430 1,320 4,020 3,430 2126.6 10897 431 4740 7870 4879 17489 total 1320 8760 11300 7006 28386

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