Question

Exercise 2-3 Your answer is partially correct. Try again. A job order cost sheet for Ryan Company is shown below. Job No. 92 Direct Materials Direct Labor For 2,000 Units Manufacturing Overhead Date Beg. bal. 7,000 8,000 5,600 Jan. 1 8 8,000 12 9,000 7,200 25 2,900 27 4,000 21,000 3,200 16,000 17,900 Cost of completed job: Direct materials Direct labor Manufacturing overhead $17,900 21,000 16,000 $54,900 Total cost Unit cost ($54,900 + 2,000) $27.45 (a) On the basis of the foregoing data, answer the following questions.

Answer 1

Requirement 1: Balance in Work in Process on January 1 $ 20,600 = 7000+8000+5600 Requirement 2a: Overhead rate: Last year Current year 70.00% =5600/8000 80.00% = 7200/9000 Requirement 2b: Preparation of Journal Entries: Date Account Titles and Explanation Jan-31 Work in process inventory Raw materials inventory (To record raw materials used) Debit Credit $ 10,900 $ 10,900 $ 13,000 31 Work in process inventory Factory labor (To record factory labor used) $ 13,000 $ 10,400 31 Work in process inventory Manufacturing overhead (To record manufacturing overhead) $ 10,400 $ 54,900 31 Finished goods inventory Work in process inventory (To record job completed) $ 54,900 * Kindly Comment down for any clarifications/ queries and please upvote.