Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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. R92, $1,600 and Job No. R93, $2,600. During October, a summary of source documents reveals the following:

Job Number Materials Requisitions Slips Labor Time Ticket
Job No. R92 $2,200

$7,1000

Job No. R93 1,700 4,100
Job No. R94 4,700 3,300
Job No.R95 2,200 $5,100
General Use 1,800 2,000
Total $12,600 $21,600

Sandro applies manufacturing overhead to jobs at an overhead rate of 90% of direct labor cost. Job No. R92 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. R92. 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions

Question

List the factors that increase or decrease resource demand.

Answered: 1 week ago