Exercises: Set B umphrey Company during the Prepare entries for factory are 556,000. The employers payroll taxes for the factory payro e benefits to be paid by the employer on this payroll are $5,000. workers for l The Of the (S 2. total utable to indirect labor rend cost of factory Jabot, 80% is related to direct labor and 20% is attnb. (b) Prepary to record the factory labor costs for the month of January 82-28 Walken the entry to assign factory labor to production. $3,200 and two jobs in process: 1,200, During May, a summary of source documents (SO 2, 5) company has a balace in wg uses a job order cost accounting system, On May 1, the Prepre jornal entries or reveals the following. Time Tickets Requisition Slips $2,500 4.400 Job Number 430 431 $2,200 3,000 7.600 $12,800 $10,500 1,000 1 1,500 14.300 Walken Manufacturing applies manufacturing overhead to jobs at an 80% of direct labor cost. Job No. 429 is completed during the month. overhead rate of (ii) the time tickets, Gii) the assignment of manufacturing overhead to jobs, and (iv) 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. E2-3B A job order cost sheet for Michaels Company is shown below Analyze a job cost sheet and prepare entries for manufacturing costs. (S0 2, 3, 4,5) Job No. 92 For 2,000 Units Overhead 4,200 6,375 3,000 13,575 Direct Materials Labor Direct Manufacturing 6,000 8,500 4,000 Date Beg. bal. Jan. I 3,925 6,000 25 2,000 11,925 12 18,500 Cost of completed job: Direct materials Direct labor Manufacturing overhead $11,925 18,500 13,575 $44,000 Total cost Unit cost ($44,000 2,000) 22.00 Instructions On the basis of the foregoing data answer the following questions. (1) Wh at was th e balance in Work in Process Inventory on January 1 if this was the only unfinished job? (2) If manufacturing overhead is apled on the basis of direct labor cost, what over- (b) Prepare head rate was used in each year? pare summary entries at January 31 to record the current year's transactions per- taining to Job No. 92