Question

Exercise 15-2 (Part Level Submission) Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,400 and two jobs in process: Job No. 429 $2,100, and Job No. 430 $1,300. During May, a summary of source documents reveals the following Materials Requisition Slips Labor Time Tickets Job Number 429 430 431 General use $2,000 3,100 7,700 $2,600 3,600 4,500 $10,700 900 $11,600 $12,800 1,300 $14,100 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

Answer 1

	Debit	Credit
Work in process inventory	10,700
Manufacturing overhead	900
Raw material inventory		11,600
Work in process inventory	12,800
Manufacturing overhead	1,300
Factory labor		14,100
Work in process inventory	7,680
Manufacturing overhead		7,680
(12,800*60%
Finished goods inventory	7900
Work in process inventory		7900
(2100+2600+2000+60%*2000)