Question

What is the correct finished goods inventory and cost of goods sold when the jobs are completed?

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, 2017, the general ledger for Case Inc. contains the following data. Raw Materials Inventory 4,494 Manufacturing Overhead Applied $34,925 Work in Process Inventory $5,928 Manufacturing Overhead Incurred $33,866 Subsidiary data for Work in Process Inventory on June 1 are as follows. ob Cost Sheets Customer Job Cost Element Direct materials Direct labor Rodgers Stevens Linton $642 $856 $963 578 621 Manufacturing overhead 428 722 776 $1,412 $2,156 $2,360 342 During June, raw materials purchased on account were $5,243, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $963 and miscellaneous costs of $428 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Customer Job Rodgers Koss Stevens Linton Rodgers Materials Requisition Slips $856 2,140 535 1,391 321 5,243 1,605 6,848 Time Tickets $ 910 856 385 1,284 417 3,852 1,284 $5,136 General use 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 $20,223. Each customer paid in full.

Answer 1

The amount for finished goods inventory, work in process and cost of goods sold will be $15772

the calculation for it is shown below:

Job	Direct materials	Direct labor	Manufacturing overhead (direct labor * 1.25)	Total costs
Rodgers	1819 (642+856+321)	1669 (342+910+417)	2086	5574
Stevens	1391 (856+535)	963 (578+385)	1204	3558
Linton	2354 (963+1391)	1905 (621+1284)	2381	6640
				15772