Question

A job order cost sheet for Ryan Company is shown below Job No. 92 For 2,000 Units Direct Manufacturing Direct Materials Labor Date Overhead Beg. bal 6,300 6,700 4,690 Jan. 1 8 12 25 27 6,700 9,200 7,360 2,600 4,800 3,840 15,60020,700 15,890 Cost of completed job Direct materials $15,600 20,700 15,890 $52,190 $26.10 Direct labor Manufacturing overhead Total cost Unit cost ($52,190 2,000) (a) On the basis of the foregoing data, answer the following questions (1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job? Balance in Work in Process Inventory on January 1 (2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? (Round answers to 0 decimal places, eg, 55%.) Last year Current year Overhead rate

Answer 1

b) Date Account Title and Explanation Debit Credit 4 1 The balance in Work in process Inventory on Januray 1 5 (Direct MaterialDirect Labor+ Manuf OH) 6 (6300+ 6700+ 4690) $17,690.00 $ 9,300.00 Jan-31 Work in Process Inventory Raw Material Inventory $9,300.00 Last Year To record Direct Material Used) Current Year 80.00% 8 Overhead rate 9 (Manufacturing OH/Direct Labor cost) 10 70.00% (4690/6700) (7360/9200) 31 Work in Process Inventory $ 14,000.00 $ 14,000.00 Factory Payroll To record Factory Labor Used) 12 13 14 15 16 17 18 19 20 21 31 Work in Process Inventory $11,200.00 Manufacturing Overhead $11,200.00 (To record Manuf OH) 31 Finished Goods Inventory $52,190.00 $ 52,190.00 Work in process Inventory (To record Job Completed) (17690+ 9300+14000+11200)

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