Question 1

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		6,100		6,000		4,200
8		6,000
12				9,000		7,200
25		2,100
27				5,000		4,000
		14,200		20,000		15,400

Cost of completed job:
Direct materials		$14,200
Direct labor		20,000
Manufacturing overhead		15,400
Total cost		$49,600
Unit cost ($49,600 2,000)		$24.80

(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			%			%