Question
Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of Php7,600 and two jobs in
- Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of Php7,600 and two jobs in process: Job No. 221, Php3,600, and Job No. 222, Php4,000. During April, a summary of source documents reveals the following:
For Materials Requisition Slips Labor Time Tickets
Job No. 221 Php1,200 Php1,600
222 1,700 2,200
223 2,400 2,900
224 2,600 2,800
General use 600 400
Totals Php8,500 Php9,900
Foster applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 221 is completed during the month.
Instructions
(a) Prepare summary journal entries to record the raw materials requisitioned, factory labor used, the assignment of manufacturing overhead to jobs, and the completion of Job No. 221.
(b) Calculate the balance of the Work in Process Inventory account at April 30.
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