Question

Exercise 15-02 a-b (Video) Sheridan Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $4,170 and two jobs in process: Job No. 429 $2,490, and Job No. 430 $1,680. During May, a summary of source documents reveals the following. Job Number 429 430 431 General use Materials Requisition Slips $2,870 3,910 4,970 $11,750 960 $12,710 Labor Time Tickets $2,100 3,300 8,200 $13,600 1,550 $15,150 Sheridan Company applies manufacturing overhead to jobs at an overhead rate of 62% of direct labor cost. Job No.429 is completed during the month. 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 No. Date Account Titles and Explanation (1) May 31 (2) 31

Answer 1

No.	Date	Account Titles and Explanation	Debit	Credit
1	May 31	Work in Process inventory	$11,750
		Factory Overhead	$960
		Raw materials inventory		$12,710
		(Record Direct and Indirect materials used)
2	31	Work in Process inventory	$13,600
		Factory Overhead	$1,550
		Factory wages payable		$15,150
		(Record Direct and indirect labor used)
3	31	Work in Process inventory	$8,432
		Factory Overhead		$8432
		(Record Overhead applied => $13,600 X 62%)
4	31	Finished goods inventory	$8,762*
		Work in Process inventory		$8,762
		(Record completion of Job 429)

*Total cost of Job 429 = $2,490 (B.W.P)+ 2,870 (D.M) + $2,100 (D.L) + $ 1,302 ($2,100 X 62%) O.H

= $8,762

Work in Process inventory
Beginning balance	$4,170
Raw materials inventory	$11,750
Factory wages payable	$13,600
Factory Overhead	$8,432	Finished goods inventory	$8,762
Ending balance	$29,190

Job Cost sheets
Job No	Beginning work in process	Direct material	Direct labor	Manufacturing overhead	Total
430	$1,680	$3,910	$3,300	$2,046 ($3,300 X 62%)	$10,936
431	$0	$4,970	$8,200	$5,084 ($8,200 X 62%)	$18,254
	$1,680	$8,880	$11,500	$7,130	$29,190