Question

Milner Company is working on two job orders. The job cost sheets show the following.

Job 201 Job 202
Direct materials $7,450 $8,950
Direct labor 4,200 8,250
Manufacturing overhead 5,250 10,050

Required:
Prepare the three summary entries to record the assignment of costs to Work in Process from the data on the job cost sheets.

Answer 1

Following are the solution to this question:

Step-by-step explanation:

For point 1:

The stock of work in progress
`(7,450 + 8,950)=\$16,400`

inventory of raw materials
`\$16,400`

(In order to assign work materials)

For point 2:

The stock of works in progress
`(4,200 + 8,250) =\$12,450`

job in the factory
`\$12,450`

(The work is assigned)

For point 3:

Inventory job for Inventory works
`(5,250+10,050)= \$15,300`

Overhead production
`\$15,300`

(Appointment of work overhead)