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 $4,100

Manufacturing Overhead Applied $31,200

Work in Process Inventory $5,250

Manufacturing Overhead Incurred $28,800

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 $4,100 Manufacturing Overhead Applied $31,200 Work in Process Inventory $5,250 Manufacturing Overhead Incurred $28,800 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 $700 $800 Direct labor 300 600 500 Manufacturing overhead 375 750 625 $1,275 $2,050 $1,925 During June, raw materials purchased on account were $5,000, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $800 and miscellaneous 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 $700 $1,000 Koss 2,100 900 Stevens 400 400 Linton 1,400 1,100 Rodgers 300 5,000 3.700 General use 1,400 1,000 $6,400 $4,700 400 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 $18,600. Each customer paid in full.

Answer 1

(a) (i) Journalize the June transactions for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred. 5,000 Raw Materials Inventory Accounts Payable 5,000 4,700 Factory Labor Cash 4,700 1,200 Manufacturing Overhead Accumulated Depreciation-Equipment Accounts Payable 800 400 (a)(ii) Journalize the June transactions for the assignment of raw materials, labor, and overhead to production. Work in Process Inventory Manufacturing Overhead Raw Materials Inventory 5,000 1,400 6,400 Work in Process Inventory Manufacturing Overhead Factory Labor 3,700 1,000 4,700 4,625 Work in Process Inventory ($3,700 x $1.25) Manufacturing Overhead 4,625 a) (iii) Journalize the June transactions for the completion of jobs and sale of goods. 14,450 Finished Goods Inventory Work in Process Inventory 14,450 Job Rodgers Stevens Linton Direct Manufacturing Materials Direct Labor Overhead * $1,700 $1,600 $2,000 1,100 1,000 1,250 2,200 1,600 2,000 Mfg Overhd = Direct labor x $1.25 Total Costs $5,300 3,350 5,800 $14,450 18,600 Cash Sales 18,600 14,450 Cost of Goods Sold Finished Goods Inventory 14,450 (b) Post the entries to Work in Process Inventory. 01-06-12 30-06-12 14,450 Balance Direct materials Direct labor Overhead applied Balance 5,250 5,000 3,700 4,625 4,125 30-06-12

(c) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. $4,125 Work in process Job: Koss Direct materials Direct labor Manufacturing overhead $2,100 900 1,125 $4,125 $5,250 (d) Prepare a cost of goods manufactured schedule for June. CASE INC. Cost of Goods Manufactured Schedule For the Month Ended June 30, 2017 Work in process, June 1 Direct materials used $5,000 Direct labor 3,700 Manufacturing overhead applied 4,625 Total manufacturing costs Total cost of work in process Less: Work in process, June 30 Cost of goods manufactured 13,325 18,575 4,125 $14,450