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Tiet Manufacturing uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $ 2,000, and Job No. 430 $1,200. During May, a summary of source documents reveals the following
Materials Requisition Slips Labor Time Tickets $1,900 3,000 7,600 Job Number 429 430 431 General use $2,500 4,400 $10,40
Tiet Manufacturing applies manufacturing overhead to jobs at an overhead rate of 80% of direct labor cost. Job No. 429 is completed during the month.
Instructions
(a) Prepare summary journal entries on May 31 to record:
(i) The requisition slips,
(ii) The time tickets,
(iii) The assignment of manufacturing overhead to jobs, and
(iv) The completion of Job No. 429.
(b) Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets of the unfinished jobs.
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