Question # 00057699
Posted By: dcsmall7093
Updated on: 03/27/2015 08:00 PM Due on: 03/27/2015
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,820 and two jobs in process: Job No. 429 $2,350, and Job No. 430 $1,470. During May, a summary of source documents reveals the following.
| Job Number | | Materials
Requisition Slips | | Labor Time
Tickets | | 429 | | $3,090 | | | | $2,160 | | | | 430 | | 3,700 | | | | 3,600 | | | | 431 | | 4,910 | | $11,700 | | 7,880 | | $13,640 | | General use | | | | 951 | | | | 1,510 | | | | | $12,651 | | | | $15,150 |
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.
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Prepare summary journal entries to record (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Solution: Exercise 15-2