Question

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $ 4,130 and two jobs in process: Job No. 429 $ 2,370, and Job No. 430 $ 1,760. During May, a summary of source documents reveals the following.

Job Number		Materials Requisition Slips				Labor Time Tickets
429		$ 3,090				$ 2,080
430		3,960				3,310
431		4,820		$ 11,870		8,180		$ 13,570
General use				960				1,320
				$ 12,830				$ 14,890

Stine Company applies manufacturing overhead to jobs at an overhead rate of  69% of direct labor cost. Job No. 429 is completed during the month.

Correct answer iconYour answer is correct.

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 No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

No.	Date	Account Titles and Explanation	Debit	Credit
(1)	May 31	enter an account title to record the requisition slips	enter a debit amount	enter a credit amount
		enter an account title to record the requisition slips	enter a debit amount	enter a credit amount
		enter an account title to record the requisition slips	enter a debit amount	enter a credit amount
(2)	31	enter an account title to record the time tickets	enter a debit amount	enter a credit amount
		enter an account title to record the time tickets	enter a debit amount	enter a credit amount
		enter an account title to record the time tickets	enter a debit amount	enter a credit amount
(3)	31	enter an account title to record the assignment of manufacturing overhead to jobs	enter a debit amount	enter a credit amount
		enter an account title to record the assignment of manufacturing overhead to jobs	enter a debit amount	enter a credit amount
(4)	31	enter an account title to record the completion of Job No. 429	enter a debit amount	enter a credit amount
		enter an account title to record the completion of Job No. 429	enter a debit amount	enter a credit amount

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List of Accounts

Partially correct answer iconYour answer is partially correct.

Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.(Post entries in the order of journal entries presented in the previous part. Round answers to 0 decimal places, e.g. 5,275.)

Work in Process Inventory
choose a transaction datechoose a transaction date  May 31May 1 BalanceMay 31 Balance	enter a debit amount	choose a transaction datechoose a transaction date  May 31 BalanceMay 31May 1 Balance	enter a credit amount
choose a transaction datechoose a transaction date  May 1 BalanceMay 31 BalanceMay 31	enter a debit amount	choose a transaction datechoose a transaction date  May 31 BalanceMay 1 BalanceMay 31	enter a credit amount
choose a transaction datechoose a transaction date  May 1 BalanceMay 31May 31 Balance	enter a debit amount	choose a transaction datechoose a transaction date  May 31 BalanceMay 1 BalanceMay 31	enter a credit amount
choose a transaction datechoose a transaction date  May 31 BalanceMay 31May 1 Balance	enter a debit amount	choose a transaction datechoose a transaction date  May 31 BalanceMay 1 BalanceMay 31	enter a credit amount
choose the end date of the accounting periodchoose the end date of the accounting period  May 31May 1 BalanceMay 31 Balance	enter a debit balance	choose the end date of the accounting periodchoose the end date of the accounting period  May 31 BalanceMay 31May 1 Balance	enter a credit balance

Job Cost Sheets
Job No.		Beginning Work in Process		Direct Material		Direct Labor		Manufacturing Overhead		Total
430		$ enter a dollar amount		$ enter a dollar amount		$ enter a dollar amount		$ enter a dollar amount		$ enter a dollar amount
431		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$ enter a total amount		$ enter a total amount		$ enter a total amount		$ enter a total amount		$ enter a total amount

Answer 1

Solution:

Journal Entries - Stine company
Event	Date	Particulars	Debit	Credit
1	31-May	Work in process inventory Dr	$11,870.00
		Manufacturing overhead Dr	$960.00
		To Material inventory		$12,830.00
		(To record direct and indirect material issued)
2	31-May	Work in process inventory Dr	$13,570.00
		Manufacturing overhead Dr	$1,320.00
		To Factoy labor		$14,890.00
		(To distribute factory labor cost incurred)
3	31-May	Work in process inventory Dr ($13,570*69%)	$9,363.00
		To Manufacturing overhead		$9,363.00
		(To record application of overhead to production)
4	31-May	Finished goods inventory Dr	$8,975.00
		To Work In Process inventory		$8,975.00
		(To record completion of Job 429)

Work In Process Inventory
Date	Debit	Date	Credit
May 1 balance	$4,130.00	31-May	$8,975.00
31-May	$11,870.00	Balance May 31	$29,958.00
31-May	$13,570.00
31-May	$9,363.00
Total	$38,933.00	Total	$38,933.00

Job Cost Sheets
Job No	Beginning WIP	Direct materials	Direct labor	Manufacturing overhead	Total
430	$1,760.00	$3,960.00	$3,310.00	$2,284.00	$11,314.00
431		$4,820.00	$8,180.00	$5,644.00	$18,644.00
	$1,760.00	$8,780.00	$11,490.00	$7,928.00	$29,958.00