Busch Manufacturing uses a job-order cost accounting system.

On April 1, the company has Work in Process Inventory of $12,000 with two jobs in process: Job No. 323, $7,000, and Job No. 324, $5,000.

During April, a summary of source documents reveals the following:

Materials Requisition Slips Labour Time Tickets

Job No. 323 $ 1,200 $ 2,000

324 1,700 3,700

325 7,500 3,000

326 2,400 1,800

General use 900 1,200

Totals $13,700 $11,700

Busch applies manufacturing overhead to jobs at an overhead rate of 50% of direct labour cost. Job No. 323 and Job No. 324 is complete at the end of April. Job 324 is sold.

Required:

a) Prepare summary journal entries to record the raw materials requisitioned, factory labour used, the assignment of manufacturing overhead to jobs, and the completion of any jobs.(4 Marks)

b) Calculate the balance of the Work in Process Inventory account at April 30.