1. A job order cost sheet for Michaels Company is shown below.

Job No. 92

Date

Beg. bal. Jan.

Direct

Materials

3,925

6.000

2.000

11.925

Direct

Labor

6,000

8.500

4.000

18.500

For 2,000 Units

Manufacturing

Overhead

4.200

6.375

3.000

13.575

12

25

27

Cost of completed job:

Direct materials

Direct labor

Manufacturing overhead

Total cost

Unit cost ($44,000 2,000)

$11,925

18,500

13,575

$44,000

$ 22.00

Instructions

(a) Answer the following questions.

(1) What was the balance in Work in Process Inventory on January 1 if this was the

only unfinished job?

(2) If manufacturing overhead is applied on the basis of direct labor cost, what over-

head rate was used in each year?

(b) Prepare summary entries at January 31 to record the current year's transactions per-