Summary Journal Entries & T-account

E2-2 Stine Company uses a job order costsystem. On May 1, the company has a balance in Work in Process Inventory of$3,500 and two jobs in process: Job No. 429 $2,000, and job no. 430 $1,500.During May, a summary of source documents reveals the following.

Job Number                   Materials                              Labor

                   Requisition Slips                   Time Tickets

429                   $2,500                                 $1,900

  430                   3,500                                  3,000

  431                   4,400       $10,400               7,600              $12,500

General use  ___                      800                                          1,200 

                                          $11,200                                     $13,700

StineCompany applies manufacturing overhead to jobs at an overhead rate of 60% ofdirect labor cost. Job No. 429 is completed during the month.

Instructions

1. Prepare summary journal entries torecord (i) the requisition slips, (ii) the time tickets, (iii) the assignmentof manufacturing overhead to jobs, and (iv) the completion of Job No. 429.

2. Post the entries to Work in ProcessInventory, and prove the agreement of the control account with the job costsheets. (Use a T-account.)