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 $4,100 Manufacturing Overhead Applied $34,600 Work in Process Inventory $5,900 Manufacturing Overhead Incurred $29,300 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 $600 $900 $800 Direct labor 400 600 600 Manufacturing overhead 500 750 750 $1.500 $2,250 $2.150 During June, raw materials purchased on account were $5,200, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Customer Job Materials Requisition Slips Rodgers $800 Koss 2,200 Stevens 600 Linton 1,400 Rodgers 200 5.200 General use 1,600 $6.800 Time Tickets $800 800 400 1,100 400 3,500 1,100 $4,600 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 $18,700. Each customer paid in full.

Answer 1

No	Account titles and explanation	Debit	Credit
1)	Raw materials inventory	$5200
	Accounts payable		$5200
	(To record purchase of raw materials)
	Factory labor	$4600
	Cash		$4600
	(To record factory labor costs paid)
	Manufacturing overhead	$1300
	Accumulated depreciation- Equipment		$900
	Accounts payable		$400
	(To record manufacturing overhead costs incurred)
2)	Work-in-Process inventory	$5200
	Manufacturing overhead	$1600
	Raw materials inventory		$6800
	(To record assignment of direct materials)
	Work-in-Process inventory	$3500
	Manufacturing overhead	$1100
	Factory labor		$4600
	(To record assignment of factory labor)
	Work-in-process inventory (3500*1.25)	$4375
	Manufacturing overhead		$4375
	(To record assignment of manufacturing overhead)
3)	Finished goods inventory	$14975
	Work-in-Process inventory		$14975
	(To record completion of jobs)
	Cash	$18700
	Sales revenue		$18700
	(To record sales of goods)
	Cost of goods sold	$14975
	Finished goods inventory		$14975
	(To record the cost of goods sold)

Calculation of Finished goods inventory= Direct materials+Direct labor+Manufacturing overhead

= $5300+4300+5375= $14975

Direct materials= $600+900+800+800+600+1400+200= $5300

Direct labor= $400+600+600+800+400+1100+400= $4300

Manufacturing overhead= $4300*1.25= $5375