E2-3 A job order cost sheet for Ryan Company is shown below. and prep manufac (L
ID: 2334386 • Letter: E
Question
E2-3 A job order cost sheet for Ryan Company is shown below. and prep manufac (LO 1, 2, Job No. 92 For 2,000 Units Direct Materials 5,000 6,000 Date Direct Manufacturing Overhead Beg. bal. Jan. 1 8 12 25 27 6,000 8,000 4,000 4,200 6,400 3,200 13,800 2,000 13,000 18,000 Cost of completed job: Direct materials Direct labor Manufacturing overhead $13,000 18,000 13,800 $44,800 Total cost Unit cost ($44,8002,000) $22.40 Instructions (a) On the basis of the foregoing data, answer the following questions. (1) What was the balance in Work in Process Inventory on January 1 if this was the (2) If manufacturing overhead is applied on the basis of direct labor cost, what over- (b) Prepare summary entries at January 31 to record the current year's transactions per- only unfinished job? head rate was used in each year? taining to Job No. 92.Explanation / Answer
a
(1) Balance in Work in Process Inventory on January 1 =5000+6000+4200=$15200
(2) Manufacturing Ovehead / Direct Labor =8000/6400=80%
b
DR CR Work in Process Inventory 8000 Raw Material Inventory 8000 Work in Process Inventory 12000 Factory labor 12000 Work in Process Inventory 9600 Manufacturing Overhead 9600 Finished goods Inventory 44800 Work in Process Inventory 44800Related Questions
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