Question

Problem 15-3A (Part Level Submission) 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 Work in Process Inventory $4,284 $5,652 Manufacturing Overhead Applied Manufacturing Overhead Incurred $33,293 $32,283 Subsidiary data for Work in Process Inventory on June 1 are as follows. Cost Element Direct materials Direct labor Manufacturing overhead Job Cost Sheets Customer Job Rodgers Stevens Linton $612 $816 $918 326 551592 408 689 740 $1,346 $2,056 $2,250 During June, raw materials purchased on account were $4,998, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $918 and miscellaneous costs of $408 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 Koss Stevens Linton Rodgers $816 2,040 510 1,326 306 4,998 1,530 $6,528 $867 816 367 1,224 398 3,672 1,224 $4,896 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 $19,278. Each customer paid in full.

Answer 1

NO	ACCOUNT TITLES AND EXPLANATION	DEBIT	CREDIT
1)	Raw materials inventory	$ 4,998
	Accounts payable		$ 4,998
	( To record purchase of raw materials )
	Factory labor	$ 4,896
	Cash		$ 4,896
	( To record factory labor cost paid )
	Manufacturing overhead (918+408)	$ 1,326
	Accumulated depreciation - Equipment		$ 918
	Accounts payable		$ 408
	( To record manufacturing overhead costs incurred )
2)	work in process inventory	$ 4,998
	Manufacturing overhead	$ 1,530
	Raw materials inventory (4998 +1530)		$ 6,528
	( To record assignment of direct materials )
	work in process inventory	$ 3,672
	Manufacturing overhead	$ 1,224
	Factory labor ( 3672+1224)		$ 4,896
	( To record assignment of factory labor )
	work in process inventory ($3,672 *$ 1.25 per dollar)	$ 4,590
	Manufacturing overhead		$ 4,590
	( To record assignment of manufacturing overhead )
3)	Finished goods inventory (see note 1 )	$ 15,036
	Work in process inventory		$ 15,036
	( to record completion of jobs )
	Cash	$ 19,278
	Sales		$ 19,278
	( To record sale of goods )
	Cost of goods sold ( see note 1 )	$ 15,036
	Finished goods		$ 15,036
	( To record the cost of goods sold )

explanation :

note 1 :
Job	Direct materials	Direct labor	Manufacturing overhead	Total costs
Rodgers	$ 1,734 {612+816+306}	$ 1,591 {326+867+398}	$ 1,989   { $1,591*125%}	$ 5,314      {1,734+1,591+1,989}
Stevens	$ 1,326   {816+510}	$ 918       {551+367 }	$ 1,148     { $ 918*125% }	$ 3,392     {1,326+918+1,148}
Linton	$ 2,244   {918+1326 }	$ 1,816    {592+1224 }	$ 2,270    {$ 1,816 *125 %}	$ 6,330    {2,244+1,816+2,270}
				$ 15,036