Question

Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead cost incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods.

Post the entries to Work in Process Inventory.

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

Prepare a cost of goods manufactured schedule for June.

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 Work in Process Inventory $4,600 $5,900 Manufacturing Overhead Applied Manufacturing Overhead Incurred $35,500 $30,000 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Rodgers Stevens Direct materials $600 $700 Direct labor 300 600 Manufacturing overhead 375 750 $1,275 $2,050 Linton $1,000 700 875 $2,575

Answer 1

Answer:

No	Account titles and Explanation	Debit	Credit
1)	Raw materials inventory	4,900
	Accounts payable			4,900
	Factory wages		4,600
	cash				4,600
	manufacturing overhead	1,400
	Accumulated depreciation		1,000
	Accounts payable			400
2)	Work in process inventory	4,900
	manufacturing overhead	1,400
	Raw materials inventory		6,300
	work in process invenory	3,200
	manufacturing overhead	1,400
	Factory wages			4,600
	work in process inventory	4000
	manufacturing overhead (3,200@ 1.25)		4,000
3)	finished goods		14,425
	work in process			14,425
	Accounts receivable		19,800
	sale				19,800
	cost of goods sold		14,425
	finished goods inventory		14,425
Work in process inventory
	1-Jun	Opening	5,900	June	finished	14,425
		DM	4,900
		DL	3,200
		OH applied	4,000
	30-Jun	Ending	3,575
Cost of unfinished jobs koss = Direct Material + Direct Labour + Manufacturing Overhead = 2000 + 700 + 875 (i.e., [email protected] = 75) = 3,575
Cost of goods manufactured Schedule
	Beginning work in process			5,900
	direct materials			4,900
	direct labor			3,200
	overhead applied			4,000
	Total manufacturing costs			12,100
	Total manufacturing costs & opening WIP		18,000
	less:Ending work in process inventor		(3,575)
	cost of goods manufactured			14,425