Alvarez Manufacturing uses a job order cost accounting system. On Max 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.

Alvarez 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 the requisition slips, time tickets, the as- signment of manufacturing overhead to jobs, and 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 cost sheets.

Transcribed Image Text:

Job Number Materials Requisition Slips Labor 429 $2,500 430 2,000 Time Tickets $ 2,400 3,000 431 4,400 7,600 General use 800 1,200 $9.700 $14,200