Jagger Ltd uses a job order cost accounting system. On April 1, the company has Work in process inventory of $7,600 and two jobs in process: job no. 221, $3,600, and job no. 222, $4,000. During April, a summary of source documents reveals the following:
Jagger applies manufacturing overhead to jobs at an overhead rate of 60% of direct labour cost. Job no. 221 is completed during the month.
Instructions :
(a) Prepare summary journal entries to record the raw materials requisitioned, factory labour used, the assignment of manufacturing overhead to jobs, and the completion of job no. 221.
(b) Calculate the balance of the Work in process inventory account at 30 April.

Question

Jagger Ltd uses a job order cost accounting system. On April 1, the company has Work in process inventory of $7,600 and two jobs in process: job no. 221, $3,600, and job no. 222, $4,000. During April, a summary of source documents reveals the following:
  Jagger applies manufacturing overhead to jobs at an overhead rate of 60% of direct labour cost. Job no. 221 is completed during the month.
Instructions :
(a) Prepare summary journal entries to record the raw materials requisitioned, factory labour used, the assignment of manufacturing overhead to jobs, and the completion of job no. 221.
(b) Calculate the balance of the Work in process inventory account at 30 April.

Quizplus · Accepted Answer

The Answer of Jagger Ltd uses a job order cost accounting system. On April 1, the company has Work in process inventory of $7,600 and two jobs in process: job no. 221, $3,600, and job no. 222, $4,000. During April, a summary of source documents reveals the following:
  Jagger applies manufacturing overhead to jobs at an overhead rate of 60% of direct labour cost. Job no. 221 is completed during the month.
Instructions :
(a) Prepare summary journal entries to record the raw materials requisitioned, factory labour used, the assignment of manufacturing overhead to jobs, and the completion of job no. 221.
(b) Calculate the balance of the Work in process inventory account at 30 April.

Jagger Ltd Uses a Job Order Cost Accounting System