Please do part B Exercise 15-2 (Part Level Submission) Stine Company uses a job
ID: 2532475 • Letter: P
Question
Please do part B
Exercise 15-2 (Part Level Submission) Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $4,080 and two jobs in process: Job No. 429 $2,590, and Job No. 430 $1,490. During May, a summary of source documents reveals the following. Materials Requisition Slips Labor Time Tickets Job Number 429 430 431 General use $2,130 3,580 7,740 $2,870 3,660 4,500 $11,030 990 $12,020 $13,450 1,630 $15,080 Stine Company applies manufacturing overhead to jobs at an overhead rate of 66% of direct labor cost. Job No. 429 is completed during the month.Explanation / Answer
Manufacturing overheads are 66% of direct labor cost
therefore
Job No.430... Labor Cost=$3,580 Overeheas Cost=$3580*66%=$2,363 (rounded off)
Job No.431... Labor Cost=$7,740 Overeheas Cost=$7740*66%=$5,108 (rounded off)
Work In process Inventory May 1 Balance $4,080 May 31 $8,996 May 31 $11,030 May 31 $13,450 May 31 $8,877 May 31 Balance $28,441