Exercise 2-3

A job order cost sheet for Ryan Company is shown below.

Job No. 92						For 2,000 Units
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Beg. bal. Jan. 1		5,700		7,260		5,082
8		7,260
12				9,200		7,820
25		2,200
27				4,000		3,400
		15,160		20,460		16,302

Cost of completed job:
Direct materials		$15,160
Direct labor		20,460
Manufacturing overhead		16,302
Total cost		$51,922
Unit cost ($51,922 2,000) Exercise 2-3 A job order cost sheet for Ryan Company is shown below. Job No. 92 For 2,000 Units Date Direct Materials Direct Labor Manufacturing Overhead Beg. bal. Jan. 1 5,700 7,260 5,082 8 7,260 12 9,200 7,820 25 2,200 27 4,000 3,400 15,160 20,460 16,302 Cost of completed job: Direct materials $15,160 Direct labor 20,460 Manufacturing overhead 16,302 Total cost $51,922 Unit cost ($51,922 2,000) $25.96 (a) On the basis of the foregoing data, answer the following questions. (1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job? Balance in Work in Process Inventory on January 1 $ (2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? (Round answers to 0 decimal places, e.g. 55%.) Last year Current year Overhead rate % % (b) Prepare summary entries at January 31 to record the current years transactions pertaining to Job No. 92. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 (To record raw materials used) 31 (To record factory labor used) 31 (To record manufacturing overhead) 31 (To record job completed)		$25.96