A job order cost sheet for Lowry Company is shown below.
Job No. 92
For 2,000 Units Date Direct Direct Manufacturing Materials Labor Overhead Beg. bal.
Jan. 1 6,400 6,300 4,725 8 6,300 12 9,100 7,280 25 2,300 27 4,700 3,760 15,000 20,100 15,765 Cost of completed job:
Direct materials $15,000 Direct labor 20,100 Manufacturing overhead 15,765 Total cost $50,865 Unit cost ($50,865/2,000) $25.43
(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 years transactions pertaining to Job No. 92. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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)