Exercise 2-2 Stine Company uses a job order cost system. On May 1, the company h
ID: 2604407 • Letter: E
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Exercise 2-2 Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory source documents reveals the following of $3,770 and two jobs in process: Job No. 429 $2,430, and Job No. 430 $1,340. During May, a summary of Materials Requisition Slips Labor Time Tickets Job Number 429 430 431 General use $2,940 3,850 4,680 $2,300 3,400 8,170 $11,470 940 $12,410 $13,870 1,570 $15,440 | Stine Company applies manufacturing overhead to jobs at an overhead rate of 68% of direct labor cost. Job No. 429 is completed during the monthExplanation / Answer
Calculation of Balance of work in process inventory on May 31 is shown as follows:-
Work in Process Inventory (Amount in $)
Closing Balance = 3770+11470+13870+9432-9234 = $29,308
Date Particulars Amount Date Particulars Amount May 1 Balance Opening Balance 3770 May 31 Finished Goods Inventory 9234 May 31 Raw materials Inventory 11470 May 31 Factory Labor 13870 May 31 Manufacturing overhead 9432 May 31 Balance Closing Balance 29,308Related Questions
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