(LO 1, 2, 3, 4) A job order cost sheet for Michaels Company is shown below.
| Job No. 92 | For 2,000 Units | ||
| Date | Direct Materials | Direct Labor | Manufacturing Overhead |
| Beg. bal. Jan. 1 | 3,925 | 6,000 | 4,200 |
| 8 | 6,000 | ||
| 12 | 8,500 | 6,375 | |
| 25 | 2,000 | ||
| 27 | 4,000 | 3,000 | |
| 11,925 | 18,500 | 13,575 | |
| Cost of completed job: | |||
| Direct materials | $11,925 | ||
| Direct labor | 18,500 | ||
| Manufacturing overhead | 13,575 | ||
| Total cost | $44,000 | ||
| Unit cost ($44,000 ÷ 2,000) | $22.00 | ||
Instructions
a. 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?
b. Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92.
Analyze a job cost sheet and prepare entries for manufacturing costs.
