PROBLEM # $2$ USE EXCELL SPREADSHEET

Sandro Clean uses a job order cost accounting system. On October $1,$ the company has a balance in Work

in Process Inventory of $$4,200$ and two jobs in process: Job No$.$ R$92,$ $$1,600$ and Job No$.$ R$93,$ $$2,600.$

During October, a summary of source documents reveals the following:

FOR JOB Materials Requisition Slips Labor Time Tickets

R$-922,2007,100$

R$-931,7004,100$

R$-944,7003,300$

R$-952,2005,100$

General Use $1,8002,000$

$12,60021,600$

Sandro applies manufacturing overhead to jobs at an overhead rate of $90\%$ of direct labor cost.

Job No$.$ R$92$ was completed during the month.

INSTRUCTIONS:

A Prepare summary journal entries to record the requisition slips, time tickets, the assignment

of manufacturing overhead to jobs, and the completion of Job No$.$ R$92.$ Show computations.

B Answer the following questions.

$1$ What is the balance in Work in Process Inventory at October $31?$

$2$ If Sandro incurred $$13,000$ of manufacturing overhead in addition

to indirect labor and indirect materials, was overhead

over$-$ or underapplied in October and by how much?