Question

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,770 and two jobs in process: Job No. 429 for $2,430, and Job No. 430 for $1,340. During May, a summary of source documents reveals the following:

Materia Labor Time
Job # Requisition Slips Tickets
429 $2,940 $2,300
430 3,850 3,400
431 4,680 $11,470 8,170 $13,870
General use 940 1,570
$12,410 $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 month.
The following are summary journal entries to record the requisition slips, time tickets, assignment of manufacturing overhead to jobs, and the completion of Job No. 429:
No. Date Account Tiles and Explanation Debit Credit
1 May 31 Work in Process Inventory 11,470
Manufacturing Overhead 940
Raw Materials Inventory 12,410
2 May 31 Work in Process Inventory 13,870
Manufacturing Overhead 1,570
Factory Labor 15,440
3 May 31 Work in Process Inventory 9,432
Manufacturing Overhead 9,432
4 May 31 Finished Good Inventory 9,234
Work in Process Inventory 9,234
Required:
a. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.

Answer 1

Step-by-step explanation:

WORK IN PROCESS INVENTORY

May 1 balance 3770 May 31 Finished Goods 9234

31-May Material 11470

31-May labour 13870

31-May Overheads 9431.6

may 31 Balance 29307.6

JOB COST SHEET

Job no. Beg. WIP Material Labour Overheads Total

430 1340 3850 3400 2312 10902

431 0 4680 8170 5555.6 18405.6

TOTAL 1340 8530 11570 7867.6 29307.6

Note: Total cost of Job 429 transferred to Finished goods:

Beginning cost 2430

Add: Material 2940

Add: Labour 2300

Add: Overheads (2300*68%) 1564

Total cost of Job 429 9234