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 $3,800 Manufacturing Overhead Applied $35,800 Work in Process Inventory $4,800 Manufacturing Overhead Incurred $29,800 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 $800 $800 Direct labor 200 500 500 Manufacturing overhead 250 625 625 $950 $1,925 $1,925 During June, raw materials purchased on account were $4,700, 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 Time Tickets Rodgers $800 $800 Koss 2,000 800 Stevens 400 300 Linton 1,200 1,200 Rodgers 300 400 4,700 3,500 General use 1,300 1,100 $6,000 $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 $19,900. Each customer paid in full.

Answer 1

Answer -

No.	Account Titles and Explanation	Debit	Credit
(1)	Raw materials inventory	$4700
	Accounts payable		$4700
	(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	$4700
	Manufacturing overhead	$1300
	Raw materials inventory		$6000
	(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	$13575
	Work in process inventory		$13575
	(To record completion of jobs)
	Cash	$19900
	Sales revenue		$19900
	(To record sale of goods)
	Cost of goods sold	$13575
	Finished goods inventory		$13575
	(To record the cost of goods sold)

Calculation:

Finished goods inventory:

Customer Job	Direct materials	Direct labor	Manufacturing overhead	Total costs
Rodgers	$1600	$1400	$1750	$4750
Stevens	$1200	$800	$1000	$3000
Linton	$2000	$1700	$2125	$5825
Total costs				$13575

Here,

Direct materials:

Rodgers = $500 + $800 + $300 = $1600

Stevens = $800 + $400 = $1200

Linton = $800 + $1200 = $2000

Direct labor:

Rodgers = $200 + $800 + $400 = $1400

Stevens = $500 + $300 = $800

Linton = $500 + $1200 = $1700

Manufacturing overhead:

Rodgers = $1400 * $1.25 = $1750

Stevens = $800 * $1.25 = $1000

Linton = $1700 * $1.25 = $2125