Question

Question 1 A job cost sheet for Rolen Company is shown below. Job No. 92 Direct Materials Direct Labour For 2,000 Units Manufacturing Overhead Date Beginning Balance January 1 $5,000 $2,500 $3,920 6,000 8 12 8,500 5,950 25 2,000 27 3,900 17,400 2,730 11,180 11,920 Cost of completed job: Direct materials Direct labour Manufacturing overhead $11,920 17,400 11,180 $40,500 Total cost Unit cost ($40,500 - 2,000) $20.25 (a) Your answer is correct. On the basis of the foregoing data, answer the following questions: 1. What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job? The balance in Work in Process Inventory 11,420

Answer 1

Journal entry

Date	General Journal	Debit	Credit
Jan 31	Work in process inventory	8000
	Raw material inventory		8000
	(To assign raw material)
31	Work in process inventory	12400
	Factory labor		12400
	(To assign factory labor)
31	Work in process inventory	8680
	Factory overhead		8680
	(To assign overhead)
31	Finished goods inventory	40500
	Work in process inventory		40500
	(To record completion of Job)