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 =?
Direct labor
Date, Beg. Bal. Jan. 1 =$6,000, Jan.8= ?, Jan.12= $8,000, Jan.25= ?, Jan.27=$4,000
Manufacturing Overhead
Date, Beg. bal. Jan.1= $4,500, Jan.8= ?, Jan.12=$6,400, Jan.25=?, Jan.27= $3,200,
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 o
2-If manufacturing overhead is applied on the basis of direct labor cost, what overhea
b-Prepare summary entries at January 31 to record the current years transactions pe

Solution
1 Direct Material =
Direct Labour =
Mfg Overhead=
WIP as on 1 Jan

5000
6000
4500
15500

2 Last Year
Direct Labour =
Mfg Overhead=
Overhead rate as % of Direct Labour=

6000
4500
75

This year ( see working )

Direct Labour =
Mfg Overhead=
Overhead rate as % of Direct Labour=

12000
9600
80

Working ,
Direct Labour = 18000-6000=12000
Mfg Overhead=14100-4500=9600
b

Journal Entries as on 31 Jan

S.No.

Accounts Title & Description

1 Finsihed Goods Inventory
WIP inventory
( Transfer of Op. WIP to Finsihed Goods )

Debit
15500

2 WIP Inventory
Direct Materials
Direct Labour
Mfg Overheads
( Transfer of current years cost to WIP )

29600

3 Finsihed Goods Inventory

29600
WIP inventory
( Transfer of current year WIP to Finished Goods)

.25 =$2,000, Jan.27 =?, Total = $13,000.

n.25= ?, Jan.27=$4,000, Total= $18,000.

.25=?, Jan.27= $3,200, Total =$14,100.

nuary 1 if this was the only unfinished job?

abor cost, what overhead rate was used in each year?
nt years transactions pertaining to Job No. 92.

Credit
15500

8000
12000
9600

29600