Question

Current Attempt in Progress A job order cost sheet for Ryan Company is shown below. Job No. 92 Direct Materials 6,300 7,000 Direct Labor 7,000 For 2,000 Units Manufacturing Overhead 4,900 Date Beg. bal. Jan. 1 8 12 25 27 9,000 7,200 3,000 4,000 20,000 3,200 15,300 16,300 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost ($51,600 + 2,000) $16,300 20,000 15,300 $51,600 $25.80

Answer 1

Req 1.
Balance of WIP inventory on Jan01:
Direct material cost		6,300
Direct Labour cost		7,000
Overheads applied		4,900
Balance of WIP inventory on Jan01:	18,200
Req 2.
OH rate as % of DLC:
Previous year:
Overheads applied in WIP beg. Balance	4,900
Divide: DLC included in WIP beg. Balance	7,000
OH rate as % of DLC:			70%
Current year
Overheads applied in Current year (7200+3200)	10400
Divide: DLC incurred (9000+4000)	13000
OH rate as % of DLC			80%
Req 3.
Journal entries
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Work in process inventory		10,000
	Raw material inventory			10000
	(for material used in production)
b.	Work in process inventory		13,000
	Factory wages account			13,000
	(for direct labour cost incurred)
c.	Work in process inventory		10,400
	Manufacturing overheads			10,400
	(for overheads applied)
d.	Finished Goods inventory		51600
	Work in process inventory	(16300+20000+15300)	51,600
	(for goods completed)