Question

job order P-3A Case Inc. is a construction company specializing in custom patios. The pa st of goods constructed of concrete, brick, fiberglass, and lumber, depending upon customer p dule. eference. On June 1, 2017, the general ledger for Case Inc. contains the following data. Raw Materials Inventory $4,200 Manufacturing Overhead Applied Work in Process Inventory $5,540 Manufacturing Overhead Incurred Subsidiary data for Work in Process Inventory on June 1 are as follows. $31,650 Job Cost Sheets Customer Job Cost Element Direct materials Direct labor Manufacturing overhead Rodgers Stevens Linton $ 900 580 725 S 600 320 400 $1,320 S 800 540 675 $2,015 $2,205 During June, raw materials purchased on account were $4,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscei laneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following Customer Job Materials Requisition Slips Time Tickets Rodgers Koss Stevens Linton Rodgers S 800 2,000 500 1,300 300 S 850 800 360 1,200 390 3,600 1,200 $4,800 4,900 1,500 General use $6,400 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 $18,900. Each customer paid in full. Instructions (a) 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.

Answer 1

a) Journal Entries:
Date	Accounts Titles	Debit $	Credit $
1	Raw Materials	4900
	Accounts Payable		4900
	(being purchase of raw materials)
	Payroll expense	4800
	Cash		4800
	(being labor paid)
	Manufacturing overhead	4000
	Raw Material		1500
	Payroll expense		1200
	Depreciation		900
	Miscel exp		400
	(being manuf. Overhead costs incurred)
2	WIP	13000
	Materials		4900
	Payroll		3600
	Manuf. Overhead		4500	(3600*1.25)
	(being material, labor and overhead applied to WIP)
3	Finished Jobs	14740
	WIP		14740
	(being finished jobs transferred out)
4	Cash	18900
	Sales		18900
	(being sales of jobs Rodgers, Stevens & Linton)
b) WORK IN PROCESS INVENTORY ACCOUNT:
OB	5540	Finished Jobs	14740	1320+2015+2205
Materials	4900	CB	3800	2000+800+(800*1.25)
Payroll	3600
Manuf. Overhead	4500
Total	18540	Total	18540
c) Closing balance of WIP = JOB KOSS = 2000+800+(800*1.25) = $3800
d) Schedule of Cost of goods manufactured for June:
WIP OB		5540
ADD: Material	4900
Payroll	3600
Overhead	4500
Total cost incurred in June		13000
Total cost of manufacturing		18540
Less: WIP CB		-3800
Cost of Goods Manufactured=		14740