Job Number Materials Requisition Slips Labor Time Tickets 429 $2,270 $1,620 430
ID: 2420767 • Letter: J
Question
Job Number
Materials
Requisition Slips
Labor
Time Tickets
429
$2,270
$1,620
430
3,530
3,200
431
4,600
$10,400
7,820
$12,640
880
1,450
$11,280
$14,090
No.
Date
Account Titles and Explanation
Debit
Credit
(i)
(ii)
(iii)
(iv)
Work in Process Inventory
Job Cost Sheets
Job
No.
Beginning Work
in Process
Direct
Material
Direct
Labor
Manufacturing
Overhead
Total
Stine Company uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,240 and two jobs in process: Job No. 429 $2,180, and Job No. 430 $1,060. During May, a summary of source documents reveals the following.Job Number
Materials
Requisition Slips
Labor
Time Tickets
429
$2,270
$1,620
430
3,530
3,200
431
4,600
$10,400
7,820
$12,640
General use880
1,450
$11,280
$14,090
Stine Company applies manufacturing overhead to jobs at an overhead rate of 90% of direct labor cost. Job No. 429 is completed during the month.
Explanation / Answer
Solution-
No.
Date
Account Tittles & Explanation
Debit
Credit
(i)
May 31
Work in Process inventory
$2,180
Manufacturing Overhead
$2,270
Raw Material Inventory
$4,450
(To assign materials to jobs and overhead)
(ii)
May 31
Work in Process Inventory
$1,620
Factory Labor
$1,620
(To assign labor to jobs and overhead)
(iii)
May 31
Work in Process Inventory ($1,620*90%)
$1,458
Manufacturing Overhead
$1,458
(To assign overhead to jobs)
(iv)
May 31
Finished Goods Inventory
$5,258
Work in Process Inventory
$5,258
(To record completion of Job No. 429:direct materials $2,180, direct labor $1,620 and manufacturing overhead $1,458)
Work in Process Inventory
May 1 Balance
$3,240
May 31
$5,258
May 31
$10,400
May 31
$12,640
May 31
$1,458
May 31 Balance
$22,480
Job Cost Sheet
Job No.
Beginning Work in Process
Direct
Material
Direct Labor
Manufacturing
Overhead
Total
430
$1,060
$3,530
$3,200
$2,880
$10,670
431
$4,600
$7,820
$7,038
$19,458
$1,060
$8,130
$11,020
$9,918
$30,128
Calculation-
Manufacturing Overhead = Direct Labor*90%
No.
Date
Account Tittles & Explanation
Debit
Credit
(i)
May 31
Work in Process inventory
$2,180
Manufacturing Overhead
$2,270
Raw Material Inventory
$4,450
(To assign materials to jobs and overhead)
(ii)
May 31
Work in Process Inventory
$1,620
Factory Labor
$1,620
(To assign labor to jobs and overhead)
(iii)
May 31
Work in Process Inventory ($1,620*90%)
$1,458
Manufacturing Overhead
$1,458
(To assign overhead to jobs)
(iv)
May 31
Finished Goods Inventory
$5,258
Work in Process Inventory
$5,258
(To record completion of Job No. 429:direct materials $2,180, direct labor $1,620 and manufacturing overhead $1,458)
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