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 $4,500 Manufacturing Overhead Applied $30,100 Work in Process Inventory $5,450 Manufacturing Overhead incurred $34,300 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 $700 $700 $900 Direct labor 300 500 600 Manufacturing overhead 375 625 750 $1,375 $1,825 $2,250 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 $500 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 $700 $800 Koss 2,200 800 Stevens 600 400 Linton 1.400 1,000

Answer 1

General Journal Finished Goods Inventory Work in Process Inventory |(To record completion of jobs) Accounts Receivable 1) General Journal Raw Materials Inventory Accounts Payable (To record raw materials purchased on account) Factory Labor Cash General Journal Debit 2) Work in Process Inventory Manufacturing Overhead Raw Materials Inventory Debit Credit 3) Debit Credit Credit $5,200 $5,200 $1,300 $14,300 $5,200 $14,300 $6,500 (To record assignment of direct materials) Work in Process Inventory Manufacturing Overhead Factory Labor (To record assignment of factory labor) Work in Process Inventory Manufacturing Overhead |(To record assignment of mfg. overhead) (Mfg. overhead applied @ $1.25 per direct labor cost) (Therefore, mfg. overhead applied = $3400 x $1.25 = $4250) $4,800 $19,200 $4,800 $3,400 $1,400 $19,200 Sales Revenue |(To record factory labor cost paid) Manufacturing Overhead Accounts Payable Accumulated Depreciation (To record mfg. overhead costs incurred) |(To record sale of jobs) Cost of Goods Sold Finished Goods Inventory |(To record cost of jobs sold) (Ref: Workings for transfer to F.G. & cost of goods sold) $1,400 $4,800 $14,300 $14,300 $500 $900 $4,250 $4,250 Work in Process $5,450 $14,300 $5,200 $3,400 $4,250 $4,000 Beg. Bal. Trf. To F.G. DM DL МОН End. Bal. Cost of unfinished job: $2,200 + Direct labor $800 $1,000 = Ending WIP Balance: $4,000 Direct Materials: + Mfg. OH: Koss

CASE INC. Cost of Goods Manufactured Schedule For the Month Ended June 30 Work In Process, Beginning Balance $5,450 $5,200 $3,400 $4,250 Direct Materials used Direct Labor Cost Manufacturing Overhead $12,850 $18,300 $4,000 $14,300 Total Current Period Costs Total Cost of Work in Process Less: Work In Process, Ending Balance Cost of Goods Manufactured

Workings: Jobs МОН Total DM DL Beginning balance: $700 $700 $900 $2,300 $300 $500 $600 $375 $625 $750 $1,750 $1,375 $1,825 $2,250 $5,450 [MOH = $300 x $1.25 = $375] [МОН - $500 х $1.25 - $625] [MOH = $600 x $1.25 = $750] Rodgers Stevens Linton $1,400 Current costs: $700 $600 $1,400 $300 $3,000 Rodgers $800 $400 $1,000 $400 $2,600 $1,000 $500 $1,250 $500 $3,250 $2,500 $1,500 $3,650 $1,200 $8,850 [MOH = $800 x $1.25 = $1000] [MOH = $400 x $1.25 = $500] [MOH = $1000 x $1.25 = $1250] [МОН - $400 х $1.25 - $500] ---> (A) Stevens Linton Rodgers [$5450 + $8850] $14,300 Transferred to F.G. & Cost of goods sold Ending Work in Process: [MOH = $800 x $1.25 = $1000] --> (B) $2,200 $800 $1,000 $4,000 Koss $5,200 $3,400 $4,250 $12,850 ---> (A) + (B) Current Costs $4,800 Total Costs $7,500 $6,000 $18,300 [$5450 + $12850]