Question

Problem 20-3A

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, 2017, the general ledger for Case Inc. contains the following data.

Problem 20-3A 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, 2017, the general ledger for Case Inc. contains the following data Raw Materials Inventory Work In Process Inventory Subsidiary data for Work in Process Inventory on June 1 are as follows $4,200 $5,540 Manufacturing Overhead Applied Manufacturing Overhead Incurred $32,640 $31,650 Job Cost Sheets Customer Job Stevens Cost Element Direct materlals Direct labor Manufacturing overhead Rodgers Linton $600 320 400 $1,320 $800 540 675 $2,015 $900 580 725 $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.

Answer 1

Answer 1.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-a.	Raw Materials Inventory                     Dr.	4,900
	To Accounts Payable		4,900
	(To record purchase of raw materials)
1-b.	Factory Labor                                            Dr.	4,800
	To Cash		4,800
	(To record factory labor costs paid)
1-c.	Manufacturing Overhead                     Dr.	1,300
	To Accumulated Dep. - Equipment		900
	To Accounts Payable		400
	(To record the manufacturing overhead incurred)
2-a.	WIP Inventory                                           Dr.	4,900
	Manufacturing Overhead                     Dr.	1,500
	To Raw Materials Inventory		6,400
	(To record assignment of direct materials)
2-b.	WIP Inventory                                           Dr.	3,600
	Manufacturing Overhead                     Dr.	1,200
	To Factory Labor		4,800
	(To record assignment of factory labor)
2-c.	WIP Inventory                                           Dr.	4,500
	To Manufacturing Overhead		4,500
	(To record assignment of Manufacturing Overhead)
	Manufacturing Overhead Applied = $1.25 X $3,600
	Manufacturing Overhead Applied = $4,500
3-a.	Finished Goods Inventory                    Dr.	14,740
	To WIP Inventory		14,740
	(To record completion of jobs)
3-b.	Cash                                                                Dr.	18,900
	To Sales Revenue		18,900
	(To record sale of goods)
3-c.	Cost of Goods Sold                                   Dr.	14,740
	To Finished Goods Inventory		14,740
	(To record cost of goods sold)

Job Sheet
	Rodgers	Stevens	Linton	Koss	Total
Beginning Balance	1,320	2,015	2,205	-	5,540
Direct Materials	1,100	500	1,300	2,000	4,900
Direct Labor	1,240	360	1,200	800	3,600
Manufacturing Ovrehead Applied	1,550	450	1,500	1,000	4,500
Total	5,210	3,325	6,205	3,800	18,540
Jobs Completed	Completed	Completed	Completed	WIP

Answer 2.
WIP Inventory
Beg. Bal.	5,540	14,740	Finished Goods Inventory
Direct Materials	4,900
Direct Labor	3,600
Manufacturing Overhead	4,500
End. Bal.	3,800
Answer 3.
WIP Inventory - Ending			3,800
Koss:
Direct Materials		2,000
Direct Labor		800
Manufacturing Overhead		1,000	3,800

Answer 4.
Case Inc.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
WIP Inventory - June 1, 2017		5,540
Direct Materials Used	4,900
Direct Labor	3,600
Manufacturing Overhead	4,500
Total Manufacturing Costs		13,000
Total cost of WIP		18,540
Less: WIP Inventory - June 30, 2017		(3,800)
Cost of Goods Manufactured		14,740