Milner Manufacturing uses a job-order costing 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:

Milner Manufacturing applies manufacturing overhead to jobs at an overhead rate of 60% of direct labour cost. Job No. 429 is completed during the month.
Instructions
(a) Prepare summary journal entries to record the:
1. Requisition slips
2. Time tickets
3. Assignment of manufacturing overhead to jobs
4. Completion of Job No. 429
(b) Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.

Transcribed Image Text:

Materials Requisition Slips Job Number 429 430 431 General use $2,500 3,500 4,400 Labour Time Tickets $1,900 3,000 7,600 $10,400 800 $ 11,200 1,200 $13,700