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

Question

Exercise 2-2 Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,840 and two jobs in process: Job No. 429 $2,370, and Job No. 430 $1,470. During May, a summary of source documents reveals the following. Materials Requisition Slips Labor Time Tickets Job Number 429 430 431 General use $2,360 3,260 8,010 $2,830 3,760 4,950 $11,540 974 $12,514 $13,630 1,300 $14,930 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.

Explanation / Answer

Working

Manufacturing Overhead applied = 13630*70% = 9541

Finished Goods Transferred :

2)

3)

Note : Please ask in relevant subject in future , it is the question of Accounting Subject

No Date Account Title & Explaination Debit Credit (i) May-31 Work in Process 11540 Manufacturing Overhead 974 Raw Material 12514 (ii) May-31 Work in Process 13630 Manufacturing Overhead 1300 Wages Payable 14930 (iii) May-31 Work in Process 9541 Manufacturing Overhead 9541 (iv) May-31 Finished Goods 9212 Work in Process 9212

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