Exercise 22 Stine Company uses a job order cost system On Ma

Exercise 2-2 Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory source documents reveals the following of $3,770 and two jobs in process: Job No. 429 $2,430, and Job No. 430 $1,340. During May, a summary of Materials Requisition Slips Labor Time Tickets Job Number 429 430 431 General use $2,940 3,850 4,680 $2,300 3,400 8,170 $11,470 940 $12,410 $13,870 1,570 $15,440 | Stine Company applies manufacturing overhead to jobs at an overhead rate of 68% of direct labor cost. Job No. 429 is completed during the month

Solution

Calculation of Balance of work in process inventory on May 31 is shown as follows:-

Work in Process Inventory (Amount in $)

Closing Balance = 3770+11470+13870+9432-9234 = $29,308

Date	Particulars	Amount	Date	Particulars	Amount
May 1 Balance	Opening Balance	3770	May 31	Finished Goods Inventory	9234
May 31	Raw materials Inventory	11470
May 31	Factory Labor	13870
May 31	Manufacturing overhead	9432
May 31 Balance	Closing Balance	29,308