Stine Company uses a job order cost system. On May 1, the company has a balance...

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Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process process: Job No. 429 $ 2,3

Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturin

Post the entries to Work in Process Inventory of journal entries presented in the previous and prove the agreement of the con

business accounting

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Answer 1

Answer #1

Ans-Journal Entries

No.	Date	Account Titles and Explanation	Debit ($)	Credit ($)
1	May 31	Work in Process Inventory	11,870
		Manufacturing Overhead	960
		Raw Materials Inventory		12,830
		(To record the raw materials cost)
2	May 31	Work in Process Inventory	13,570
		Manufacturing Overhead	1,320
		Factory Labor		14,890
		(To record the labor cost)
3	May 31	Work in Process Inventory ($13,570*69%)	9,363
		Manufacturing Overhead		9,363
		(To record the manufacturing overhead charged to work in process)
4	May 31	Finished Goods Inventory (WN1)	8,975
		Work in Process Inventory		8,975
		(To record the cost of finished goods inventory)

Working Note:-

Calculate the work in process transferred to finished goods account as shown below:-

Job No. 429
Beginning Work in Process	$2,370
Add:
Direct material	$3,090
Direct labor	$2,080
Manufacturing overhead ($2,080*69%)	$1,435
Transferred to Finished Goods	$8,975

Therefore, The WIP transferred to finished goods is $8,975.

Post the entries to Work- in Process Inventory as shown below:-

Work in Process Inventory

May 01	$4,130	May 31	$8,975
May 31	$11,870
May 31	$13,570
May 31	$9,363

May 31 Balance	$29,958

Prepare the job cost sheets as shown below:-

Job Cost Sheets

Job No.	Beginning Work in process	Direct Material	Direct Labor	Manufacturing Overhead	Total
430	$1,760	$3,960	$3,310	$2,284 ($3,310*69%)	$11,314
431	-	$4,820	$8,180	$5,644 ($8,180*69%)	$18,644
	$1,760	$8,780	$11,490	$7,928	$29,958

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