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 $4,300 $30,800 Manufacturing Overhead Applied Manufacturing Overhead Work in Process Inventory $5,450 locurred $32,800 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Rodgers Stevens Direct materials $500 $900 Direct labor 500 Manufacturing overhead 375 625 $1,175 $2,025 300 Linton $900 600 750 $2,250 During June, raw materials purchased on account were $5,400, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $1,000 and miscellaneous costs of $500 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Customer Materials Requisition Slips Job Rodgers Koss Stevens Linton Rodgers $700 2,200 600 1,500 400 Time Tickets $900 700 400 1,200 400 3,600 1,000 $4,600 5,400 General use 1,400 $6,800 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 $17,400. Each customer paid in full. *(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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Journal entries

No	Account title and explanation	Debit	Credit
1	Raw material inventory	5400
	Account payable		5400
	(To record purchase of raw materials)
	Factory labor	4600
	Cash		4600
	(To record factory labor cost paid)
	Manufacturing overhead	1500
	Accumulated depreciation-equipment		1000
	Account payable		500
	(To record manufacturing overhead cost incurred)
2	Work in process inventory	5400
	manufacturing overhead	1400
	Raw material inventory		6800
	(To record assignment of material)
	Work in process inventory	3600
	Manufacturing overhead	1000
	Factory labor		4600
	(To record assignment of factory labor)
	Work in process inventory	4500
	Manufacturing overhead (3600*1.25)		4500
	(To record assignment of manufacturing overhead)
3	Finished goods Inventory	15175
	Work in process inventory		15175
	(To record completion of jobs)
	Cash	17400
	Sales revenue		17400
	(To record sales)
	Cost of goods sold	15175
	Finished goods		15175
	(To record cost of goods sold)