Exercise 16-2

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,400 and two jobs in process: Job No. 429 $2,100, and Job No. 430 $1,300. During May, a summary of source documents reveals the following.

Job Number		Materials Requisition Slips				Labor Time Tickets
429		$2,600				$2,000
430		3,600				3,100
431		4,500		$10,700		7,700		$12,800
General use				900				1,300
				$11,600				$14,100

Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.

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.)

No.	Date	Account Titles and Explanation	Debit	Credit
(1)	May 31
(2)	31
(3)	31
(4)	31

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.)

Work in Process Inventory
May 31 May 31 Balance May 1 Balance		May 1 Balance May 31 May 31 Balance
May 1 Balance May 31 Balance May 31		May 1 Balance May 31 May 31 Balance
May 31 May 31 Balance May 1 Balance		May 31 May 31 Balance May 1 Balance
May 1 Balance May 31 Balance May 31		May 31 Balance May 31 May 1 Balance
May 31 May 1 Balance May 31 Balance		May 31 Balance May 31 May 1 Balance

Job Cost Sheets
Job No.		Beginning Work in Process		Direct Material		Direct Labor		Manufacturing Overhead		Total
430		$		$		$		$		$
431
		$		$		$		$		$

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,400 and two jobs in process: Job No. 429 $2,100, and Job No. 430 $1,300. During May, a summary of source documents reveals the following.