Cost Sheet

Exercise 15-3

A job order cost sheet for Ryan Company is shown below.

Job No. 92						For 2,000 Units
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Beg. bal. Jan. 1		5,500		7,120		4,984
8		7,120
12				8,000		6,800
25		2,400
27				4,000		3,400
		15,020		19,120		15,184

Cost of completed job:
Direct materials		$15,020
Direct labor		19,120
Manufacturing overhead		15,184
Total cost		$49,324
Unit cost ($49,324 ÷ 2,000)		$24.66

(a) On the basis of the foregoing data, answer the following questions. (1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?

Balance in Work in Process Inventory on January 1

$

(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?  (Round answers to 0 decimal places, e.g. 55%.)

		Last year		Current year
Overhead rate			%		%

(b) Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31
	(To record raw materials used)
31
	(To record factory labor used)
31
	(To record manufacturing overhead)
31
	(To record job completed)