Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,940 and two jobs in process: Job No. 429 $2,160, and Job No. 430 $1,780. During May, a summary of source documents reveals the following. Job Number Materials Labor Time
Requisition Slips Tickets
429 $2,770 $2,070
430 3,910 3,290
431 4,920 $11,600 8,150 $13,510
General use 940 1,460
$12,540 $14,970
Stine Company applies manufacturing overhead to jobs at an overhead rate of 69% of direct labor cost. Job No. 429 is completed during the month.
Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e. g. 5,275.)
No. Date Account Titles and Explanation Debit Credit
(1) May 31
(2) 31
(3) 31
(4) 31
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Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Post entries in the order of journal entries presented in the previous part. Round answers to 0 decimal places, e. g. 5,275.)
Work in Process Inventory
May 1 BalanceMay 31May 31 Balance
May 1 BalanceMay 31 BalanceMay 31
May 1 BalanceMay 31May 31 Balance
May 31 BalanceMay 31May 1 Balance
May 1 BalanceMay 31 BalanceMay 31
May 31May 31 BalanceMay 1 Balance
May 31 BalanceMay 1 BalanceMay 31
May 31 BalanceMay 31May 1 Balance
May 31 BalanceMay 1 BalanceMay 31
May 31 BalanceMay 31May 1 Balance
Job Cost Sheets
Job Beginning Work Direct Direct Manufacturing Total
No. in Process Material Labor Overhead
430 $ $ $ $ $
431 $ $ $ $ $

Stine Company

1. Journal Entries:

Debit:

Job 429                        $2,770

Job 430                           3,910

Job 431                           4,920

Manufacturing overhead 940

Credit Raw materials $12,540

To record raw materials used.

Debit:

Job 429                          $2,070

Job 430                            3,290

Job 431                              8,150

Manufacturing overhead 1,460

Credit Payroll               $14,970

To record labor consumed in production.

Debit:

Job 429                          $1,428

Job 430                            2,270

Job 431                            5,624

Credit Manufacturing Overhead $9,322

To assign overheads to jobs.

Debit Finished Goods $8,428

Credit Job 429 $8,428

To record the transfer of Job 429 to finished goods.

Debit Work-in-Process $9,322

Credit Manufacturing Overhead $9,322

To assign overheads to work-in-process.

Debit Work-in-Process $11,600

Debit Manufacturing Overhead $940

Credit Raw materials $12,540

To record raw materials used.

Debit Work-in-Process $13,510

Debit Manufacturing Overhead $1,460

Credit Payroll $14,970

To record labor consumed in production.

2. T-Accounts:

Job sheets

                                Job 429    Job 430     Job 431       Total

Beginning balance   $2,160      $1,780                       $3,940

Raw materials            2,770        3,910       $4,920      11,600

Direct labor               2,070       3,290          8,150       13,510

Overhead                  1,428        2,270         5,624       9,322

Finished goods       (8,428)                                          (8,428)

Ending balance     $8,428     $11,250      $18,694  $29,944

Work in Process

Beginning balance  $3,940

Raw materials           11,600

Direct labor               13,510

Overhead                  9,322

Finished goods       (8,428)

Ending balance   $29,944

Explanation:

a) Data and Calculations:

Beginning Work in Process Inventory = $3,940

Made up of Job No. 429 = $2,160

and Job No. 430 = $1,780

Job Number       Materials         Labor Time

                     Requisition Slips       Tickets

429                       $2,770              $2,070

430                          3,910                3,290

431                          4,920                 8,150

Total                    $11,600             $13,510

General use             940                 1,460

Total                  $12,540            $14,970

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

c.

explanation:

regressive tax taxes the poor and less of the wealthy. this the rich get richer and the poor get more poor. this would create a large wealth gap.