Cost sheet for Savvay Co is shown below. Job No. 223 For 2,500 Units Date Direct Materials Direct Labor Manufacturing Overhead Beg. bal. Jan. 1 3925 6000 4200 8 6000 12 8500 6375 25 2000 27 4000 3000 Total 11925 18500 13575 Cost of Completed Job Direct Materials 11925 Direct Labor 18500 Manufacturing Overhead 13575 Total Cost 44000 Unit Cost 17,60 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. 223
Cost sheet for Savvay Co is shown below.
Job No. 223 For 2,500 Units
Date Direct Materials Direct Labor Manufacturing Overhead
Beg. bal. Jan. 1 3925 6000 4200
8 6000
12 8500 6375
25 2000
27 4000 3000
Total 11925 18500 13575
Cost of Completed Job
| Direct Materials | 11925 |
| Direct Labor | 18500 |
| Manufacturing Overhead | 13575 |
| Total Cost | 44000 |
| Unit Cost | 17,60 |
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. 223.
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