Job Number Materials Requisition Slips Labor Time Tickets 429 $2,730 $1,800 430

Question

Job Number

Materials
Requisition Slips

Labor
Time Tickets

429

$2,730

$1,800

430

3,760

3,250

431

4,590

$11,080

7,400

$12,450

920

1,040

$12,000

$13,490

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 $2,820 and two jobs in process: Job No. 429 $2,060, and Job No. 430 $760. During May, a summary of source documents reveals the following.

Job Number

Materials
Requisition Slips

Labor
Time Tickets

429

$2,730

$1,800

430

3,760

3,250

431

4,590

$11,080

7,400

$12,450

General use

920

1,040

$12,000

$13,490

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

Part 1)

The journal entries are as follows:

__________

Part 2)

__________

Part 3)

No. Date Account Titles and Explanation Debit Credit (i) May 31 Work in Process Inventory $11,080 Manufacturing Overhead $920 Raw Materials Inventory $12,000 (ii) May 31 Work in Process Inventory $12,450 Manufacturing Overhead $1,040 Factory Labor $13,490 (iii) May 31 Work in Process Inventory (12,450*70%) $8,715 Manufacturing Overhead $8,715 (iv) May 31 Finished Goods Inventory (2,060 + 2,730 + 1,800 + 70%*1,800) $7,850 Work in Process Inventory $7,850

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