Stine Company uses a job order cost system. On May 1, the company has a balance

Question

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $4,080 and two jobs in process: Job No. 429 $2,590, and Job No. 430 $1,490. During May, a summary of source documents reveals the following.

Job Number

Materials
Requisition Slips

Labor Time
Tickets

$15,080

Stine Company applies manufacturing overhead to jobs at an overhead rate of 66% of direct labor cost. Job No. 429 is completed during the month.

Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

Job Number

Materials
Requisition Slips

Labor Time
Tickets

429 $2,870 $2,130 430 3,660 3,580 431 4,500 $11,030 7,740 $13,450 General use 990 1,630 $12,020

$15,080

Explanation / Answer

No. Date Account Titles and Explanation Debit Credit (i) 31-May Work in Process Inventory 11,030 Manufacturing Overhead 990 Raw Materials Inventory 12,020 (ii) 31 Work in Process Inventory 13,450 Manufacturing Overhead 1,630 Factory Labor 15,080 (iii) 31 Work in Process Inventory (13450*66%) 8,877 Manufacturing Overhead 8,877 (iv) 31 Finished Goods Inventory ($2590+ $2870 + $2,130 + $2,130 x 66%) 8,996 Work in Process Inventory 8,996

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