Question

Question 2 View Policies Current Attempt in Progress ort A job order cost sheet for Ryan Company is shown below. Job No. 92 For 2,000 Units or Direct Materials Direct Labor Manufacturing Overhead Date Beg. bal. Jan. 1 6,300 6,980 4,886 6,980 9,200 7,360 3,000 4,000 3,200 16,280 20,180 15,446 Cost of completed job: Direct materials $16,280 Direct labor 20,180 Manufacturing overhead 15,446 Total cost $51,906 Tinit cnct 1051 02.2000 42505

Answer 1

(a)

1.Balance in work in process inventory on January 1 = $6,300 (D.M) + $6,980 (D.L) + $4886 (M.O.H)

= $18,166

2. ==> Last year overhead rate = $4,886 / $6,980 X 100 = 70%

==> Current year overhead rate = $7,360 / $9200 X 100 = 80%

(b)

Date	Account titles and Explanation	Debit	Credit
Mar.31	Work in process inventory	$9,980
	Raw materials inventory		$9,980
	(To record raw materials used)
31	Work in process inventory	$13,200
	Factory wages payable		$13,200
	(To record factory labor used)
31	Work in process inventory	$10,560
	Factory overhead		$10,560
	(To record manufacturing overhead)
31	Finished goods inventory	$51,906
	Work in process inventory		$51,906
	(To record job completed)

Note:

==> Direct material used = $6,980 + $3,000 = $9,980

==> Direct labor used = $9,200 + $4,000 = $13,200

==> Overhead applied = $7,360 + $3,200 = $10,560