Question

E15.2 (LO 1, 2, 3, 4) 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. Materials Labor Job Number Requisition Slips Time Tickets 429 $2,500 3,500 4,400 $1,900 430 3,000 431 $10,400 $12,500 7,600 General use 800 1,200 $11,200 $13,700

Answer 1

a)

	Debit	Credit
Work in Process Inventory	10,400.00
Manufacturing Overhead	800.00
Raw Materials Inventory		11,200.00
Work in Process Inventory	12,500.00
Manufacturing Overhead	1,200.00
Factory Labor		13,700.00
Work in Process Inventory	7,500.00
Manufacturing Overhead		7,500.00
Finished Goods Inventory	7,540.00
Work in Process Inventory		7,540.00

b)

Work in Process Inventory
May-01	Balance	3,500.00	May-31		7,540.00
May-31		10,400.00
May-31		12,500.00
May-31		7,500.00
May-31	Balance	26,360.00

Job Cost Sheets
Job	Beginning Workin Process	Direct Material	Direct Labor	Manufacturing overhead	Total
430	1,500.00	3,500.00	3,000.00	1,800.00	9,800.00
431		4,400.00	7,600.00	4,560.00	16,560.00
Total	1,500.00	7,900.00	10,600.00	6,360.00	26,360.00