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Prepare entries for manufacturing costs. E15.2 (LO 1, 2, 3, 4), AP Stine Company uses a job order cost system. On May 1, the company
Prepare entries for manufacturing costs. E15.2 (LO 1, 2, 3, 4), AP Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following. Labor Time Tickets Job Number 429 430 Materials Requisition Slips $2,500 3,500 4,400 10,400 800 $11,200 1,900 3,000 7,600 431 General use 12,500 1,200 $13,700 manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month. Instructions a. Prepare May 31 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. b. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Use a T-account.)
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