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MENT RESOURCES Exercise 15-03 A job order cost sheet for Ryan Company is shown below. se 15-03 m 15-01A m 15-04A For 2,000 Un
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Answer #1
Answer:
1
Balance in Work in Process Inventory on January 1 =$15,500
Working notes for the answer
Description Amount
in $
Direct Material $           5,300
Direct Labor $           6,000
Manufacturing OH $           4,200
Total Opening WIP as on Jan-1 $         15,500
2
If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate
Description Last Current
Year Year
Direct labor (A) $           6,000 $       11,000 7000+4000
Manufacturing OH (B) $           4,200 $         8,800 5600+3200
% of Manu OH (B/A)) 70.00% 80.00%
3
Prepare summary entries at January 31 to record the current year's transactions pertaining to Job .
Date Description Debit $ Credit $
31-Jan Work in progress inventory $         8,500
TO Raw material Inventory(6000+2500) $       8,500
( To record Rm Inventory )
31-Jan Work in progress inventory $       11,000
To Factory labor (7000+4000) $     11,000
31-Jan Work in progress inventory $       11,220
TO manufacturing Overhead $     11,220
31-Jan Finished Goods inventory $       43,800
To Work in progress inventory(13800+17000+13000) $     43,800
( To record FG inventory )
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