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		$3,900		Manufacturing Overhead Applied		$31,800
Work in Process Inventory		$5,475		Manufacturing Overhead Incurred		$34,600

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		$500		$700		$900
Direct labor		300		600		600
Manufacturing overhead		375		750		750
		$1,175		$2,050		$2,250

During June, raw materials purchased on account were $4,700, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $1,000 and miscellaneous costs of $300 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		$800		$900
Koss		1,900		900
Stevens		500		400
Linton		1,300		1,200
Rodgers		200		400
		4,700		3,800
General use		1,400		1,200
		$6,100		$5,000

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 $17,400. Each customer paid in full.

(a)

Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)
	(To record purchase of raw materials)
	(To record factory labor costs paid)
	(To record manufacturing overhead costs incurred)
(2)
	(To record assignment of direct materials)
	(To record assignment of factory labor)
	(To record assignment of manufacturing overhead)
(3)
	(To record completion of jobs)
	(To record sale of goods)
	(To record the cost of goods sold)

Answer 1

No	Account titles and Explanation				Debit	Credit
1	Raw materials inventory				4,700
	Accounts payable					4,700
	Factory wages				5,000
	cash					5,000
	manufacturing overhead				1,400
	Accumulated depreciation					1000
	Accounts payable					300
2)	Work in process inventory				4,700
	manufacturing overhead				1,400
	Raw materials inventory					6,100
	work in process invenory				3,800
	manufacturing overhead				1,200
	Factory wages					5,000
	work in process inventory				4750
	manufacturing overhead					4,750
3)	finished goods				14,800
	work in process					14,800
	Accounts receivable				17,400
	sale					17,400
	cost of goods sold				14,800
	finished goods inventory					14,800
		Work in process inventory
	1-Jun	opening	5,475	june	finished	14,800
		DM	4,700
		DL	3,800
		OH applied	4,750
	30-Jun		3,925
cost of unfinished jobs		koss	direct mat	1,900	direct lab	900	moh	1125	=	3,925
		Cost of goods manufactured Schedule
	Beginning work in process					5,475
	direct materials				4,700
	direct labor				3,800
	overhead applied				4,750
	total manufacturing costs					13,250
	total manufacturing costs & opening WIP					18,725
	less:ending work in process inventor					3,925
	cost of goods manufactured					14,800