Question

Problem 15-03A a-d (Video) Sheridan Inc. is a construction company specializing in custom patios. The patios are constructe of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 202 the general ledger for Sheridan Inc. contains the following data. Raw Materials Inventory Work in Process Inventory $3,900 Manufacturing Overhead Applied $5,475 Manufacturing Overhead Incurred $31,800 $34,600 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 $500 $700 300 600 375 750 $1,175 $2,050 Linton $900 600 750 $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 cost of $300 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Time Tickets $900 Customer Job Rodgers Koss Stevens Linton Rodgers 900 Materials Requisition Slips $800 1,900 500 1,300 200 4,700 1,400 $6,100 400 1,200 400 3,800 200 General use 000 Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patio for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $17,400. Each customer paid in full. 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 ar automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (1)

Answer 1

Answer-

Answer 1.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-a.	Raw Materials Inventory                     Dr.	4,700
	To Accounts Payable		4,700
	(To record purchase of raw materials)
1-b.	Factory Labor                                            Dr.	5,000
	To Cash		5,000
	(To record factory labor costs paid)
1-c.	Manufacturing Overhead                     Dr.	1,300
	To Accumulated Dep. - Equipment		1,000
	To Accounts Payable		300
	(To record the manufacturing overhead incurred)
2-a.	WIP Inventory                                           Dr.	4,700
	Manufacturing Overhead                     Dr.	1,400
	To Raw Materials Inventory		6,100
	(To record assignment of direct materials)
2-b.	WIP Inventory                                           Dr.	3,800
	Manufacturing Overhead                     Dr.	1,200
	To Factory Labor		5,000
	(To record assignment of factory labor)
2-c.	WIP Inventory                                           Dr.	4,750
	To Manufacturing Overhead		4,750
	(To record assignment of Manufacturing Overhead)
	Manufacturing Overhead Applied = $1.25 X $3,800
	Manufacturing Overhead Applied = $4,750
3-a.	Finished Goods Inventory                    Dr.	14,800
	To WIP Inventory		14,800
	(To record completion of jobs)
3-b.	Cash                                                                Dr.	17,400
	To Sales Revenue		17,400
	(To record sale of goods)
3-c.	Cost of Goods Sold                                   Dr.	14,800
	To Finished Goods Inventory		14,800
	(To record cost of goods sold)

Job Sheet
	Rodgers	Stevens	Linton	Koss	Total
Beginning Balance	1,175	2,050	2,250	-	5,475
Direct Materials	1,000	500	1,300	1,900	4,700
Direct Labor	1,300	400	1,200	900	3,800
Manufacturing Overhead Applied	1,625 (1,300*1.25)	500 (400*1.25)	1,500 (1,200*1.25)	1,125 (900*1.25)	4,750
Total	5,100	3,450	6,250	3,925	18,725
Jobs Completed	Completed	Completed	Completed	WIP

Answer 2.
WIP Inventory
Beg. Bal.	5,475	14,800	Finished Goods Inventory
Direct Materials	4,700
Direct Labor	3,800
Manufacturing Overhead	4,750
End. Bal.	3,925
Answer 3.
WIP Inventory - Ending			3,925
Koss:
Direct Materials		1,900
Direct Labor		900
Manufacturing Overhead		1,125	3,925

Answer 4.
SHERIDAN INC.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
WIP Inventory - June 1, 2017		5,475
Direct Materials Used	4,700
Direct Labor	3,800
Manufacturing Overhead	4,750
Total Manufacturing Costs		13,250
Total cost of WIP		18,725
Less: WIP Inventory - June 30, 2017		(3,925)
Cost of Goods Manufactured		14,800