70.2K

Verified Solution

Link Copied!

Stine Company uses a job order cost system.

On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500.

During May, a summary of source documents reveals the following.

Job Number	Materials Requisition Slips			Labor Time Tickets
429	2,500			1,900
430	3,500			3,000
431	4,400	10,400		7,600	12,500
General use		800			1,200
		11,200			13,700

Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.

Instructions

(a) Prepare FOUR summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of mfg overhead to jobs, and (4) the completion of Job No. 429.

(b) Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Use a T-account.)

Materials

Labor

Overhead

Overhead

Answer & Explanation Solved by verified expert

See Answer