Question

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $4,240 and two jobs in process: Job No. 429 $2,580, and Job No. 430 $1,660. During May, a summary of source documents reveals the following.

Job Number		Materials Requisition Slips				Labor Time Tickets
429		$3,040				$2,100
430		3,680				3,300
431		4,710		$11,430		8,100		$13,500
General use				940				1,360
				$12,370				$14,860

Stine Company applies manufacturing overhead to jobs at an overhead rate of 61% of direct labor cost. Job No. 429 is completed during the month.

Your answer is correct. Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit lo. Date Account Titles and Explanation May 1) Work in Process Inventory 31 11430 Manufacturing Overhead 940 Raw Materials Inventory 12370 2) 31 Work in Process Inventory 13500 Manufacturing Overhead 1360 Factory Labor 14860 3) 3) 31 Work in Process Inventory 8235 Manufacturing Overhead 8235 +) 31 Finished Goods Inventory 9001 Work in Process Inventory 9001

Answer 1

Work in Process Inventory
Beg Bal	$         4,240	$         9,001	Finished Goods
Direct Material	$       11,430
Direct Labor	$       13,500
Mfg Overhead	$         8,235
End bal	$       28,404

Job No.	Beg Work in process	Direct Material	Direct Labor	Manufacturing Overhead	Total
430	$         1,660	$         3,680	$         3,300	$              2,013	$       10,653
431		$         4,710	$         8,100	$              4,941	$       17,751
	$         1,660	$         8,390	$       11,400	$             6,954	$       28,404

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