Hints: a(2) Look at the relationship between Manufacturing Overhead and direct labor at the beginning of the year and what took place in January. They are different.

(b) leverage the entries we made from the ppts and the spreadsheet to help record the transactions.

E15-3 A job order cost sheet for Ryan Company is shown below. Job No. 92 For 2,000 Units Direct Materials Direct Labor Date Beg. bal. Jan. 1 Manufacturing Overhead 4,200 6,000 5,000 6,000 8,000 6,400 2,000 4,000 18,000 3,200 13,800 13,000 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost ($44,800 = 2,000) $13,000 18,000 13,800 $44,800 $22.40 Instructions (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? (2) If manufacturing overhead is applied on the basis of direct labor cost, what over- head rate was used in each year? (6) Prepare summary entries at January 31 to record the current year's transactions per- taining to Job No. 92