Exercise 15-03 A job order cost sheet for Ryan Company is shown below. Job No. 92 Direct Materials Direct Labor For 2,000 Units Manufacturing Overhead Date Beqbal 7,000 4,900 7,000 7,000 10,000 7,500 2,500 5,000 3,750 16,150 16,500 22,000 $16,500 Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Unit cost (554,650 + 2,000) 22,000 16,150 $54,650 $27.33 (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 this was the only unfinished job? Balance in Work in Process inventory on January 1s decimal places, . ..) (2) manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? (Round answers to Last year Current year Overhead rate s are automatically indented when amount is entered De () Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92. (Credit account not indent manually.) CALCULATOR STANDARD VW PRINTER VERSION Last year Current year Overhead rate (b) Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92. (Credit account tities are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 31 (To record raw materials used) (To record factory labor used) (To record manufacturing overhead) (To record yob completed) Click if you would like to show Work for this question: Open Show Work

Name: Techwhiff
Address: 1520 Lavalette Ave, Elkins, WV 26241, USA, Elkins, 26241, US
Telephone: +1 681-298-8325
Price range: 10000

1) Balance in work in process inventory January 1 = 7000+7000+4900 = 18900 2) Overhead rate Last year Current year Overhead rate 4900/7000 = 70% 7500/10000 = 75% 3) Journal entries Date Account and explanation Debit Credit Jan 31 Work in process 9500 Raw material 9500 (To record direct material used) Jan 31 Work in process 15000 Wages payable 15000 (To record factory labor used) Jan 31 Work in process 11250 Manufacturing overhead 11250 (To record manufacturing overhead) Jan 31 Finished goods 54650 Work in process 54650 (To record jobs completed) .

Exercise 15-03 A job order cost sheet for Ryan Compan…

Answers

1) Balance in work in process inventory January 1 = 7000+7000+4900 = 18900

2) Overhead rate

	Last year	Current year
Overhead rate	4900/7000 = 70%	7500/10000 = 75%

3) Journal entries

Date	Account and explanation	Debit	Credit
Jan 31	Work in process	9500
	Raw material		9500
	(To record direct material used)

Jan 31	Work in process	15000
	Wages payable		15000
	(To record factory labor used)

Jan 31	Work in process	11250
	Manufacturing overhead		11250
	(To record manufacturing overhead)

Jan 31	Finished goods	54650
	Work in process		54650
	(To record jobs completed)

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Exercise 15-03 A job order cost sheet for Ryan Company is shown below. Job No. 92...

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