Exercise 162 Stine Company uses a job order cost system On M

Exercise 16-2 Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,970 and two jobs in process: Job No. 429 $2,220, and Job No. 430 $1,750. During May, a summary of source documents reveals the following. Materials Labor Time Ticket Job Number 429 430 431 General use Requisition Sli $2,620 3,720 4,870 $2,080 3,130 $11,2107550 7,880 $13,090 1,480 $14,570 990 $12,200 Stine Company applies manufacturing overhead to jobs at an overhead rate of 62% of direct labor cost. Job No. 429 is completed during the month.

Solution

Solution :

Journal Entries - Stine Company
S. no.	Date	Particulars	Debit	Credit
1	31-May	Work in process inventory Dr	$11,210.00
		Manufacturing overehead Dr	$990.00
		To Raw materials inventory		$12,200.00
		(To record consumption of material)
2	31-May	Work in process inventory Dr	$13,090.00
		Manufacturing overehead Dr	$1,480.00
		To Factory labor		$14,570.00
		(To assign labor cost in production)
3	31-May	Work in process inventory Dr	$8,116.00
		To Manufacturing overhead		$8,116.00
		(To apply manufacturing overhead on production)
4	31-May	Finished goods inventory Dr ($2,220 + $2,620 + $2,080 + $2,080*62%)	$8,210.00
		To Work in process inventory		$8,210.00
		(To record completion of Job 429)