Exercise 2 3

A job order cost sheet for Lowry Company is shown below.

Job No. 92 For 2,000 Units

Date Direct

Materials Direct

Labor Manufacturing

Overhead

Beg. bal. Jan. 1 6,100 6,500 4,940

8 6,500

12 9,100 7,644

25 2,700

27 5,100 4,284

15,300 20,700 16,868

Cost of completed job:

Direct materials $15,300

Direct labor 20,700

Manufacturing overhead 16,868

Total cost $52,868

Unit cost ($52,868/2,000) $26.43

(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 if this was the only unfinished job?

Balance in Work in Process Inventory on January 1 $

(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?

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 titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit

Jan. 31

(To record raw materials used)

31

(To record factory labor used)

31

(To record manufacturing overhead)

31

(To record job completed)

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Exercise 2 3 A job order cost sheet for Lowry Company is shown below. Job No. 92? ? ? ? ? ?For 2,000 Units???Date? ?Direct?Materials? ?Direct?Labor? ?Manufacturing?Overhead??Beg. bal. Jan. 1? ?6,100? ?6,500? ?4,940??8? ?6,500? ?? ? ??12? ?? ?9,100? ?7,644??25? ?2,700? ?? ? ??27? ? ? ?5,100? ?4,284?? ? ?15,300? ?20,700? ?16,868?? Cost of completed job:????   Direct materials??$15,300??   Direct labor??20,700??   Manufacturing overhead??16,868??Total cost??$52,868??Unit cost ($52,868/2,000)??$26.43???(a) On the basis of the foregoing data, answer the following questions.??(1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job? Balance in Work in Process Inventory on January 1??$???(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? ??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 titles are automatically indented when amount is entered. Do not indent manually.) Date?Account Titles and Explanation?Debit?Credit??Jan. 31???????????(To record raw materials used)????31???????????(To record factory labor used)????31???????????(To record manufacturing overhead)????31???????????(To record job completed)????Click if you would like to Show Work for this question:?? HYPERLINK “javascript:void();” ?Open Show Work??? ??? ? HYPERLINK “http://edugen.wileyplus.com/edugen/shared/assignment/test/qview.uni?id=quest2089057entrance1&selected_question=quest2089057&operation=take question” o “Show List of Accounts” ?SHOW LIST OF ACCOUNTS???