Question

Case Inc is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2020, the general ledger for Case Inc. contains the following data. Raw Materials Inventory Work in Process Inventory $4,500 Manufacturing Overhead Applied $5,675 Manufacturing Overhead Incurred $35.900 $29,300 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Rodgers Stevens Linton Direct materials $600 $900 $800 Direct labor 300 600 600 Manufacturing overhead 375 750 750 $1,275 $2,250 $2,150 During June, raw materials purchased on account were $5,200, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $800 and miscellaneous costs of $500 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Time Tickets $700 800 300 Customer Job Materials Requisition Slips Rodgers $800 Koss 2.200 Stevens 400 Linton 1,500 Rodgers 5.200 General use 1,600 $6,800 300 1.300 300 3.400 1,300 $4,700 Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18.000. Each customer paid in full. - Your answer is partially correct. Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (1) Raw Materials Inventory 5200 5200 Accounts Payable (To record purchase of raw materials) Factory Labor 4700 Cash 4700 (To record factory labor costs paid) Manufacturing Overhead 1500 Accounts Payable 375 1125 Accumulated Depreciation-Equipment (To record manufacturing overhead costs incurred) Work in Process Inventory (2) 5200 Manufacturing Overhead 1600 6800 Raw Materials Inventory (To record assignment of direct materials) Work in Process Inventory 3400 Manufacturing Overhead 1300 Factory Labor 4700 (To record assignment of factory labor) Work in Process Inventory Manufacturing Overhead (To record assignment of manufacturing overhead) Finished Goods Inventory Work in Process Inventory (To record completion of jobs) Cash Sales Revenue (To record sale of goods) Cost of Goods Sold Finished Goods Inventory To record the cost of code cold)

Answer 1

Credit2) 3) Credit $5,200 $0 1) General Journal Debit Raw Materials Inventory $5,200 Accounts Payable |(To record raw materials purchased on account) Factory Labor $4,700 Cash |(To record factory labor cost paid) Manufacturing Overhead $1,300 Accounts Payable Accumulated Depreciation |(To record mfg. overhead costs incurred) $4,700 General Journal Debit | Credit Work in Process Inventory $5,200 Manufacturing Overhead $1,600 Raw Materials Inventory $6,800 (To record assignment of direct materials) Work in Process Inventory $3,400 Manufacturing Overhead $1,300 Factory Labor Cost $4,700 |(To record assignment of factory labor) Work in Process Inventory $4,250 Manufacturing Overhead $4,250 |(To record assignment of mfg. overhead) (Mfg. overhead applied @ $1.25 per direct labor cost) (Therefore, mfg. overhead applied = $3400 x $1.25 = $4250) General Journal Debit Finished Goods Inventory L $0 Work in Process Inventory (To record completion of jobs) Accounts Receivable $18,000 Sales Revenue (To record sale of jobs) Cost of Goods Sold $14,525 Finished Goods Inventory (To record cost of jobs sold) (Ref: Workings for cost of goods sold) $18,000 $14,525 $500 $800

Workings: DL МОН Total $300 $600 $600 $375 $750 $750 $1,275 $2,250 $2,150 (MOH = $300 x $1.25 = $375] [MOH = $600 x $1.25 = $750] [MOH = $600 x $1.25 = $750] Jobs DM Beginning balance: Rodgers $600 Stevens $900 Linton $800 Current costs: Rodgers $800 Stevens $400 Linton $1,500 Rodgers $300 Cost of goods sold $700 $300 $1,300 $300 $875 $375 $1,625 $375 $2,375 $1,075 $4,425 $975 $14,525 (MOH = $700 x $1.25 = $875] [MOH = $300 x $1.25 = $375] [MOH = $1300 x $1.25 = $1625] (MOH = $300 x $1.25 = $375]