A job order cost sheet for Lowry Company is shown below.
Job No. 92
For 2,000 Units
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Beg. bal. Jan. 1
5,000
6000
5100
8
6,000
12
8000
6400
25
2,000
27
4000
3200
13000
18000
14700
Cost of completed job:
Direct materials
$13,000
Direct labor
18,000
Manufacturing overhead
14,700
Total cost
$45,700
Unit cost ($45,700 2,000)
$22.85
(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?
(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead 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.
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