Question - A job order cost sheet for Aikman Company is shown below.
Job No. 92 For 2,000 units
Direct materials
Date Beg. bal. Jan.1 =$5,000, Jan.8 =$6,000, Jan.12 =?, Jan.25 =$2,000, Jan.27 =?, Total = $13,000.
Direct labor
Date, Beg. Bal. Jan. 1 =$6,000, Jan.8= ?, Jan.12= $8,000, Jan.25= ?, Jan.27=$4,000, Total= $18,000.
Manufacturing Overhead
Date, Beg. bal. Jan.1= $4,500, Jan.8= ?, Jan.12=$6,400, Jan.25=?, Jan.27= $3,200, Total =$14,100.
Cost of completed job:
Direct materials=$13,000
Direct labor =$18,000
Manufacturing overhead=$14,100
Total cost =$45,100
Unit cost ($45,100 ÷ 2,000) =$22.55
Instructions:
a- On the basis of the foregoing data answer the following question,
1- What was the balance in Work in Progress 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 overhead rate was used in each year?
b- Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92.