Stine Company uses a job order cost system. On May 1, the company has a balance in Work in process Inventory of $3,500 and two jobs in process:Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following.
| Job Number | Materials Requisition Slips | Labor Time Tickets | ||
| 429 | $2,500 | $1,900 | ||
| 430 | 3,500 | 3,000 | ||
| 431 | 4,400 | $10,400 | 7,600 | 12,500 |
| General Factory Use | 800 | 1,200 | ||
| $11,200 | $13,700 | |||
Instructions
- Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of job N. 429.
- Post the entries to Work in Process Inventory. and prove the agreement f the control account with the job cost sheets. (Use a T-account.)
Solution
