A job order cost sheet for Sustainable Manufacturing Ltd is shown below.

Required

(a) What was the balance in Work in Process Inventory on 1 January if this was the only unfinished job? If manufacturing overhead is applied on the basis of direct labour cost, what overhead rate was used last year?

(b) Prepare summary entries at 31 January to record the current year’s transactions pertaining to Job 92.

Transcribed Image Text:

Job order no. 92 For 2000 units Date Direct Materials Direct Labour Beg. bal. Jan. 1 7000 8000 Manufacturing Overhead 5200 5222 5000 12 7000 4900 4000 27 5000 3500 $16000 $20000 $13600 Cost of completed job: Direct materials $16000 Direct labour Manufacturing overhead Total cost Unit cost ($49 600/2000) 20 000 13600 $49 600 24.80