A job order cost sheet for Sunland Company is shown below. Job No. 92 For 2,000...

 

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A job order cost sheet for Sunland Company is shown below. Job No. 92 For 2,000 Units Date Direct Materials Direct Manufacturing Labor Overhead Beg. bal. Jan. 1 4,000 4,800 3,360 8 12 25 27 4,800 6,400 5,120 1.600 3,200 2,560 10,400 14,400 11,040 Cost of completed job: Direct materials $10,400 Direct labor 14,400 Manufacturing overhead 11,040 Total cost $35,840 Unit cost ($35,840 +2,000) $17.92 (a) On the basis of this 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? (Round answers to O decimal places, eg. 55%) Last year Overhead rate % Current year % (b) Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 31 31 (To record raw materials used) 31 (To record factory labor used) 31 (To record manufacturing overhead) (To record job completed) Debit Credit A job order cost sheet for Sunland Company is shown below. Job No. 92 For 2,000 Units Date Direct Materials Direct Manufacturing Labor Overhead Beg. bal. Jan. 1 4,000 4,800 3,360 8 12 25 27 4,800 6,400 5,120 1.600 3,200 2,560 10,400 14,400 11,040 Cost of completed job: Direct materials $10,400 Direct labor 14,400 Manufacturing overhead 11,040 Total cost $35,840 Unit cost ($35,840 +2,000) $17.92 (a) On the basis of this 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? (Round answers to O decimal places, eg. 55%) Last year Overhead rate % Current year % (b) Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 31 31 (To record raw materials used) 31 (To record factory labor used) 31 (To record manufacturing overhead) (To record job completed) Debit Credit

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Answer 1 The balance in Work in Process Inventory on January 1 if this was t... View the full answer