Managerial Accounting: E20-3 A job order cost sheet for Rolen Company
Managerial Accounting E20-3 A job order cost sheet for Rolen Company is shown below. Job No. 92 For 2,000 units Date Direct Materials Direct Labor Manufacturing Overhead Beg bal Jan. 1 5,000 6,000 4,500 8 6,000 12 8,000 6,400 27 4,000 3,200 11,000 18,000 14,100 Cost of completed job: Direct materials 13,000 Direct labor 18,000 Manufacturing overhead 14,100 Total cost $45,100 Unit cost ($45,100 ÷ 2,000) $22.55
Instructions: a. 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? 2.If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? b. Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92.