Morris Manufacturing uses a job order cost accounting system. On October 1, the company has a balance in Work in Process Inventory of $5,500 and two jobs in process: Job No. 429, $3,000, and Job No. 430, $2,500. During October, a summary of source documents reveals the following:

For	Materials Requisition Slips	Labor Time Tickets
Job No. 429	$3,500	$4,400
Job No. 430	$2,600	$3,400
Job No. 431	$3,400	$4,200
Job No. 432	$3,000	$4,000
General Use	$1,000	$1,500
Total	$13,500	$17,500

Morris Manufacturing applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Jobs No. 429 is completed during the month. 

Instructions:

a. Prepare summary journal entries to record each of the following:

1. The materials requisition slips

2. Time tickets

3. The assignment of manufacturing overhead to jobs

4. The completion of Jobs No. 429 Show computations. Use proper account titles.

b. Answer the following questions.

1. What is the balance in Work in Process Inventory at October 31?

2. If Morris Manufacturing incurred $8,000 of manufacturing overhead in addition to indirect materials an indirect labor, was overhead over-or underapplied in October and by how much?

Answer rating: 100% (QA)

a Summary journal entries Materials requisition slips Work in Process Inventory 13500 Raw Materials ... View the full answer