Question

P2.3A (LO 1, 2, 3, 4, 5), AP 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	$4,200		Manufacturing Overhead Applied	$32,640
Work in Process Inventory	$5,540		Manufacturing Overhead Incurred	$31,650

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	$800	$900
Direct labor		320	540	580
Manufacturing overhead		400	675	725
		$1,320	$2,015	$2,205

During June, raw materials purchased on account were $4,900, 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		$850
Koss		2,000		800
Stevens		500		360
Linton		1,300		1,200
Rodgers		300		390
		4,900		3,600
General use		1,500		1,200
		$6,400		$4,800

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 $18,900. Each customer paid in full.

Instructions:

a. 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.

b. Post the entries to Work in Process Inventory.

c. Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.

d. Prepare a cost of goods manufactured schedule for June.

Answer 1

No	Account titles and Explanation				Debit	Credit
1	Raw materials inventory				4,900
	Accounts payable					4,900
	Factory wages				4,800
	cash					4,800
	manufacturing overhead				1,300
	Accumulated depreciation					900
	Accounts payable					400
2)	Work in process inventory				4,900
	manufacturing overhead				1,500
	Raw materials inventory					6,400
	work in process invenory				3,600
	manufacturing overhead				1,200
	Factory wages					4,800
	work in process inventory				4500
	manufacturing overhead					4,500
3)	finished goods				14,740
	work in process					14,740
	Accounts receivable				18,900
	sale					18,900
	cost of goods sold				14,740
	finished goods inventory					14,740
		Work in process inventory
	1-Jun	opening	5,540	june	finished	14,740
		DM	4,900
		DL	3,600
		OH applied	4,500
	30-Jun		3,800
cost of unfinished jobs		koss	direct mat	2,000	direct lab	800	moh	1000	=	3,800
		Cost of goods manufactured Schedule
	Beginning work in process					5,540
	direct materials				4,900
	direct labor				3,600
	overhead applied				4,500
	total manufacturing costs					13,000
	total manufacturing costs & opening WIP					18,540
	less:ending work in process inventor					3,800
	cost of goods manufactured					14,740