Problem 3 Chapter 5 Job Order Costing147Problem 3J.A.N., Inc. uses a job order cost system. On May 1, the company has a balance inWork in Process Inventory of P 3,500 and two jobs in process, Job No. 101 P2,000and Job 102 P1,500. During May, a summary of source documents reveals thefollowing.MaterialsRequisition SlipsP.LaborJob NumberP 2,5003,5004,600 P 10,600Time TicketsP 2,9003,0005.800 P 11,700101102103Generah useTotal8001,200P 12.900J.A.N Company applies manufacturing overhead to jobs at an overhead rateof 80% of direct labor cost. Job No. 101 is completed during the month.P11.400Instructions:1. Prepare summary journal entries to recorda) The requisition slipsb) The time ticketsc) The completion of Job No 101

Allocation of Manufacturing Overhead = Overhead Rate x Direct Labor Cost of Job

J.A.N., Inc. uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of P 3,500 and two jobs in process, Job No. 101 P2,000 and Job 102 P1,500. During May, a summary of source documents reveals the following. Materials Labor Job Number 101 102 Requisition Slips 2,500 3,500 4,600 Time Tickets P. P. 2,900 3,000 5.800 P 11,700 103 10,600 800 Generah use Total J.A.N Company applies manufacturing overhead to jobs at an overhead rate of 80% of direct labor cost. Job No. 101 is completed during the month. Instructions: 1. Prepare summary journal entries to record a) The requisition slips b) The time tickets c) The completion of Job No 101 1.200 P 12.900 P 11.400