Question

Oriole 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 Oriole Inc. contains the following data. Raw Materials Inventory $4,500 Manufacturing Overhead Applied $35,900 Work in Process Inventory $5,675 Manufacturing Overhead Incurred $29,300 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Linton Cost Element Rodgers Stevens Direct materials $600 $900 $800 Direct labor 300 600 600 Manufacturing overhead 375 750 750 $2,150 $1,275 $2,250 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. Materials Requisition Slips Customer Job Time Tickets Rodgers $800 $700 Koss 2,200 800 Stevens 400 300 Linton 1,500 1,300 Rodgers 300 300 5,200 3,400 General use 1,600 1,300 $6,800 $4,700

Answer 1

(a)(1) Journalize the June transactions for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred 5,200 Raw Materials Inventory Accounts Payable 5,200 4,700 Factory Labor Cash 4,700 1.300 Manufacturing Overhead Accumulated Depreciation- Equipment Accounts Payable 800 500

(a)(2) Journalize the June transactions for assignment of direct materials, labor, and overhead to production Work in Process Inventory Manufacturing Overhead Raw Materials Inventory 5,200 1,600 6,800 Work in Process Inventory Manufacturing Overhead Factory Labor 3,400 1,300 4,700 4,250 Work in Process Inventory Manufacturing Overhead 4,250

(a)(3) Journalize the June transactions for completion of jobs and sale of goods. 14,525 Finished Goods Inventory Work in Process Inventory 14.525 Cash 18.000 Working Note: Job Direct material Direct labor Manufacturing OH Total costs Roggars 1700 1300 1625 4625 Stevens 1300 900 1125 3325 Linton 23001 1900 2375 6575 14525 Sales Revenue 18,000 14,525 Cost of Goods Sold Finished Goods Inventory 14,525

(b) Post the entries to Work in Process Inventory. 6/1 14,525 Work in Process Inventory Balance 5,675 June Completed work Direct Materials 5,200 Direct labor 3.400 Overhead applied | 4,250 6/30 Balance 4,000 (c) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. $4,000 6/30 balance in Work in Process Inventory Unfinished Job (Koss) Direct materials Direct labor Manufacturing overhead 2.200 800 1,000 $4,000

(d) Prepare a cost of goods manufactured schedule for June. ORIOLE INC. Cost of Goods Manufactured Schedule For the Month Ended June 30, 2020 $5,675 $5,200 3,400 4.250 Work in process, June 1 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Total cost of work in process Less: Work in process, June 30 Cost of goods manufactured 12,850 18,525 4,000 $14,525