Question

Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, ibers upon customer preference on June 1, 2017, the general ledger for Case Inc. contains the following data , and lumber, depending Raw Materials Inventory Work in Process Inventory $4.242 Manufacturing Overhead Applied $5.595 Manufacturing Overhead Incurred $32,966 $31.967 Subsidiary data for Work in Process inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Direct materials Direct labor Manufacturing overhead Rodgers Stevens Linton $606 $808 323 545 404 51.333 $2.035 52 227

Answer 1

Solution 1:

Case Inc.
Journal Entries
No.	Particulars	Debit	Credit
1-a.	Raw Materials Inventory	4949
	Accounts Payable		4949
	(To record purchase of raw materials)
1-b.	Factory Labor	4849
	Cash		4849
	(To record factory labor costs paid)
1-c.	Manufacturing Overhead	1313
	Accumulated Depreciation - Equipment		909
	Accounts Payable		404
	(To record the manufacturing overhead incurred)
2-a.	WIP Inventory	4949
	Manufacturing Overhead	1515
	Raw Materials Inventory		6464
	(To record assignment of direct materials)
2-b.	WIP Inventory	3637
	Manufacturing Overhead	1212
	Factory Labor		4849
	(To record assignment of factory labor)
2-c.	WIP Inventory ($1.25*3637)	4546
	Manufacturing Overhead		4546
	(To record assignment of Manufacturing Overhead)
3-a.	Finished Goods Inventory (Working Note 1)	14889
	WIP Inventory (5263+3359+6267)		14889
	(To record completion of jobs)
3-b.	Cash	19089
	Sales Revenue		19089
	(To record sale of goods)
3-c.	Cost of Goods Sold	14889
	Finished Goods Inventory		14889
	(To record cost of goods sold)

Working Note 1:
Job Sheet
	Rodgers	Stevens	Linton	Koss	Total
Beginning Work in Process Balance	1333	2035	2227	-	5595
Direct Materials	1111	505	1313	2020	4949
Direct Labor	1253	364	1212	808	3637
Manufacturing Ovrehead Applied	1566	455	1515	1010	4546
Total	5263	3359	6267	3838	18727
Jobs Completion status	Finished	Finished	Finished	WIP

Solution 2:
WIP Inventory
Beg. Bal.	5595	14889	Finished Goods Inventory
Direct Materials	4949
Direct Labor	3637
Manufacturing Overhead	4546
End. Bal.	3838

Solution 3:
Cost of Unfinished Job: Koss
Direct materials	2020
+Direct labor	808
+Manufacturing Overehad	1010
=	3838