Rolen Company

E15-3 A job order cost sheet for Rolen Company is shown below.

Job No. 92   For 2,000 units
Date Direct materials Direct labor Manufacturing Overhead
 Beg. bal. Jan.  1 5,000 6,000 4,500
                       8 6,000    
                     12   8,000 6,400
                     25 2,000    
                     27   4,000 3,200
  13,000 18,000 14,100
       
 Cost of completed job    
    Direct materials   $13,000
    Direct labor   18,000
    Manufacturing overhead   14,100
 Total cost     $45,100
 Unit cost ($45,100 ÷ 2,000)   $22.55

 Instructions

(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
The 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.