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Question - Vaughn Company uses a job order cost system. On May 1, the company has balances in Raw Materials Inventory of $15,600 and Work in Process Inventory of $3,920 and two jobs in process: Job No. 429 $2,490, and Job No. 430 $1,430. During May, the company incurred factory labor of $14,890. A summary of source documents reveals the following. Vaughn Company applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 429 is completed during the month.
Required -
(a) Record the May 1 inventory balances and the factory labor incurred.
(b) Record (1) material usage from requisition slips, (2) factory labor usage from time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429.
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