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. Work in Process Inventory $5,425 Manufacturing Overhead Incurred $29,800 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 $700 $900 $900 Direct labor 300 500 500 Manufacturing overhead 375 625 625 $1,375 $2.025 $2,025 During June, raw materials purchased on account were $5,000, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $500 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 $800 Koss 1,900 900 Stevens 600 Linton 1,400 1,400 Rodgers 400 5,000 General use 1,500 1,100 $6,500 $5,100 4,000 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 $20,200. Each customer paid in full.

Answer 1

1) Work in process inventory account

6/1	Balance	5425	June	Jobs completed	15500
	Direct material	5000
	Direct labor	4000
	Manufacturing overhead	5000
6/30	Ending balance	3925

Cost of unfinished Jobs $3925 Direct materials $1900 + Direct labor $900 + Manufacturing overhead $1125 = $3925