Question
2.2 Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500and two
2.2 Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following. Stine Company applies manufacturing overhead to jobs at an overhead rate of60% of direct labor cost. Job No. 429 is completed during the month.
No.DateAccount Titles and ExplanationDebitCredit
(i)May 31
(ii)May 31
(iii)May 31
(iv)May 31
a)Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started