Exercise 15-2

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,920 and two jobs in process: Job No. 429 $2,600, and Job No. 430 $1,320. During May, a summary of source documents reveals the following.

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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Post entries in the order of journal entries presented in the previous part. Round answers to 0 decimal places, e.g. 5,275.)

Labor Time Materials Tickets Job Number Requisition Slips $3,040 $2,300 429 3,430 4,020 30 4,740 $11,800 7,870 $13,600 31 General use 1,310 900 $12,700 $14,910 Stine Company applies manufacturing overhead to jobs at an overhead rate of 62% of direct labor cost. Job No. 429 is completed during the month