Ikerd Manufacturing uses a job order costing system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $2,000 and Job No. 430 $1,200. During May, a summary of source documents reveals the following.

Ikerd Manufacturing applies manufacturing overhead to jobs at an overhead rate of 80% 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) the time 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 costsheets.

Transcribed Image Text:

Materials Labor Job Number 429 430 431 General use Requisition Slips $2,500 3,500 $1,900 3,000 4,400 $10,400 800 $11,200 7,600 $12,500 1,200 $13,700