Answer:
Stine Company
1. Journal Entries:
Debit:
Job 429 $2,770
Job 430 3,910
Job 431 4,920
Manufacturing overhead 940
Credit Raw materials $12,540
To record raw materials used.
Debit:
Job 429 $2,070
Job 430 3,290
Job 431 8,150
Manufacturing overhead 1,460
Credit Payroll $14,970
To record labor consumed in production.
Debit:
Job 429 $1,428
Job 430 2,270
Job 431 5,624
Credit Manufacturing Overhead $9,322
To assign overheads to jobs.
Debit Finished Goods $8,428
Credit Job 429 $8,428
To record the transfer of Job 429 to finished goods.
Debit Work-in-Process $9,322
Credit Manufacturing Overhead $9,322
To assign overheads to work-in-process.
Debit Work-in-Process $11,600
Debit Manufacturing Overhead $940
Credit Raw materials $12,540
To record raw materials used.
Debit Work-in-Process $13,510
Debit Manufacturing Overhead $1,460
Credit Payroll $14,970
To record labor consumed in production.
2. T-Accounts:
Job sheets
Job 429 Job 430 Job 431 Total
Beginning balance $2,160 $1,780 $3,940
Raw materials 2,770 3,910 $4,920 11,600
Direct labor 2,070 3,290 8,150 13,510
Overhead 1,428 2,270 5,624 9,322
Finished goods (8,428) (8,428)
Ending balance $8,428 $11,250 $18,694 $29,944
Work in Process
Beginning balance $3,940
Raw materials 11,600
Direct labor 13,510
Overhead 9,322
Finished goods (8,428)
Ending balance $29,944
Explanation:
a) Data and Calculations:
Beginning Work in Process Inventory = $3,940
Made up of Job No. 429 = $2,160
and Job No. 430 = $1,780
Job Number Materials Labor Time
Requisition Slips Tickets
429 $2,770 $2,070
430 3,910 3,290
431 4,920 8,150
Total $11,600 $13,510
General use 940 1,460
Total $12,540 $14,970
