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:
JOB NUMBER REQUISITION SLIPS TIME TICKETS
429 $2,500 $1,900
430 3,500 3,000
431 4,400 $10,400 7,600 $12,500
GENERAL USE 800 1,200
Stine Company applies manufacturing overhead jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.
(a) Prepare summary journal entries to record (i) requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429.
(b) Post entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets (Use a T account)