Stine company | Accounting homework help

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Stine company | Accounting homework help

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. Materials Job Number 429 430 431 General use Requisition Slips $2,500 3,500 4,400 $10,400 $11,200 Labor Time Tickets 200 Labor Time Tickets $1,900 3,000 7,600 $12,500 800 1,200 Prepare entries for factory labor. (LO 2, 3), AP Prepare journal entries for manufacturing costs. (LO 2, 3, 4, 5), AP $13,700 Stine Company applies 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 summary journal entries to record (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) 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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