Question

A job order cost sheet for Ryan Company is shown below. Job No. 92 Direct Materials Direct Labor For 2,000 Units Manufacturin
(1) What was the balance in Work in Process Inventory on January 1f this was the only unfinished job? Balance in Work in Proc
. Raw Materials Inventory (To record raw materials used) 31 Work in Process Inventory Tractory Labor (To record factory labor
0 1
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Answer #1
a)
1) Balance in WIP inventory on Jan 1 $ 17,690.00 ($ 6300 + $ 6700 + $ 4690)
2) OH rate
For Last Year ($ 4690 / $ 6700) 70%
For Current Year ($ 7360 / $ 9200) or, 80%
($ 3840 / $ 4800)
b) Summary Entries
Particulars Debit Credit
WIP $ 15,600.00
To R.M inventory $ 15,600.00
WIP $ 20,700.00
To Factory Labor $ 20,700.00
WIP $ 15,890.00
To Manu. OH $ 15,890.00
F.G $ 52,190.00
To WIP $ 52,190.00
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