Managerial Accounting: E2-2 Stine Company uses a job order cost system

Managerial Accounting

E2-2
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 revels 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 Use 800 1,200
$11,200 $13,700

Stine Manufacturing applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.

Instructions:
a. Prepare summary journal entries to record: (i) the requisition slips, (ii) tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429.
b. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets (use T accounts).
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