A job order cost sheet for Michaels Company is shown below

Instructions

(a) Answer the following questions.
(1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?
(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?

(b) Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92.

Transcribed Image Text:

Job No. 92 Date Beg. bal. Jan. 1 8 12 25 27 Direct Materials 3,925 6,000 2,000 11,925 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost ($44,000 + 2,000) Direct Labor 6,000 8,500 4,000 18,500 For 2,000 Units Manufacturing Overhead 4,200 6,375 3,000 13,575 $11,925 18,500 13,575 $44,000 $ 22.00