CALCULATOR PRINTER VERSION .???? Exercise 2-2 Company uses a job order cost syst

Question

CALCULATOR PRINTER VERSION .???? Exercise 2-2 Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $4,240 and two jobs in process: Job No. 429 Stine $2,580, and Job No. 430 $1,660. 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 $2,060 3,310 3,680 4,710 $11,430 8,130 $13,500 940 $12,370 1,360 $14,860 Stine Company applies manufacturing overhead to jobs at an overhead rate of 61% of direct labor cost. Job No. 429 is completed during the month.

Explanation / Answer

Work in process inventory

By Finished goods inventory

[2580 + 3040+2060+(0.61*2060)]

Note:- Manufacturing overhead = 61% of Direct labor cost

   Finished goods inventor will included beginning job no.429 cost , material cost , direct labor cost and manufacturing overhead .

Date Accounts Amount Date Accounts Amount 1 May To Balance b/d 4240 31 May

By Finished goods inventory

[2580 + 3040+2060+(0.61*2060)]

8937 To Raw materials 11430 31 May By Balance c/d 28468 To Factory labor 13500 To Manufacturing overhead (13500*0.61) 8235 $37405 $37405

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