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		6,400		6,300		4,977
8		6,300
12				9,000		7,560
25		3,000
27				5,000		4,200
		15,700		20,300		16,737

Cost of completed job:
Direct materials		$15,700
Direct labor		20,300
Manufacturing overhead		16,737
Total cost		$52,737
Unit cost ($52,737/2,000)		$26.37

(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.

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)

Answer rating: 100% (QA)

a1 Calculate the balance in work in process Inventory as on January 1 as provided below Work in process as on January 1 is 17677 Work in process inventory refers to those goods on which partial work h... View the full answer