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Lowry Company

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E2-3 A job order cost sheet for Lowry Company is shown below.

Job No. 92 2000  units
Date Direct Materials Direct Labor Manufacturing Overhead
1-Jan  5,000  6,000  5,100
8-Jan  6,000
12-Jan  8,000  6,400
25-Jan  2,000
27-Jan  4,000  3,200
 13,000  18,000  14,700
Cost of completed job:
   Direct materials  13,000
   Direct labor  18,000
   Manufacturing overhead  14,700
Total cost  45,700
Unit cost (45700/2000) 22.85

(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
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.

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