Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,710 and two jobs in process: Job No. 429 $2,110, and Job No. 430 $1,600. During May, a summary of source documents reveals the following.
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Job Number
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Materials
Requisition Slips
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Labor Time
Tickets
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| 429 |
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$2,860 |
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$2,350 |
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| 430 |
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3,940 |
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3,260 |
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| 431 |
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4,960 |
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$11,760 |
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8,140 |
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$13,750 |
| General use |
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908 |
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1,560 |
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$12,668 |
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$15,310 |
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.
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Prepare summary journal entries to record (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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No.
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Date
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Account Titles and Explanation
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Debit
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Credit
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| (i) |
May 31
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| (ii) |
31
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| (iii) |
31
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| (iv) |
31
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Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Post entries in the order of journal entries presented in the previous question.)
| Work in Process Inventory |
| May 31 BalanceMay 31May 1 Balance |
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| May 31May 31 BalanceMay 1 Balance |
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| May 31May 1 BalanceMay 31 Balance |
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| May 1 BalanceMay 31May 31 Balance |
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| May 31May 31 BalanceMay 1 Balance |
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| May 31May 1 BalanceMay 31 Balance |
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Job Cost Sheets
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Job
No.
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Beginning Work
in Process
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Direct
Material
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Direct
Labor
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Manufacturing
Overhead
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Total
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| 430 |
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$
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$
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$
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$
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$
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| 431 |
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$
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$
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$
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$
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$
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