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. $4,600 Manufacturing Overhead Applied $35,000 Work in Process Inventory $5,425 Manufacturing Overhead Incurred $29,800 Raw Materials Inventory Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Rodgers Stevens Linton $700 Direct materials $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 $700 Rodgers $800 Kos 1,900 900 Stevens 600 400 Linton 1,400 1,400 Rodgers 400 500 5,000 4,000 General use 1,500 1,100 $6.500 $5,100 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

Answer:

Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-a.	Raw Materials Inventory                     Dr.	5000
	To Accounts Payable		5000
	(To record purchase of raw materials)
1-b.	Factory Labor                                            Dr.	5100
	To Cash		5100
	(To record factory labor costs paid)
1-c.	Manufacturing Overhead                     Dr.	1400
	To Accumulated Dep. - Equipment		900
	To Accounts Payable		500
	(To record the manufacturing overhead incurred)
2-a.	WIP Inventory                                           Dr.	5000
	Manufacturing Overhead                     Dr.	1,500
	To Raw Materials Inventory		6500
	(To record assignment of direct materials)
2-b.	WIP Inventory                                           Dr.	4000
	Manufacturing Overhead                     Dr.	1100
	To Factory Labor		5100
	(To record assignment of factory labor)
2-c.	WIP Inventory (4000 x 1.25) Dr.	5000
	To Manufacturing Overhead		5000
	(To record assignment of Manufacturing Overhead)
	Manufacturing Overhead Applied = $1.25 X $4000
	Manufacturing Overhead Applied = $5000
3-a.	Finished Goods Inventory                    Dr.	15500
	To WIP Inventory		15500
	(To record completion of jobs)
3-b.	Cash                                                                Dr.	20200
	To Sales Revenue		20200
	(To record sale of goods)
3-c.	Cost of Goods Sold                                   Dr.	15500
	To Finished Goods Inventory		15500
	(To record cost of goods sold)

Case Inc.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
WIP Inventory - June 1, 2017		5425
Direct Materials Used	5000
Direct Labor	4000
Manufacturing Overhead	5000
Total Manufacturing Costs		14000
Total cost of WIP		19425
Less: WIP Inventory - June 30, 2017		(3925)
Cost of Goods Manufactured		15500