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. $4,100 $33,800 Raw Materials Inventory Work in Process Inventory Manufacturing Overhead Applied Manufacturing Overhead Incurred $5,675 $28,600 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Stevens Linton Rodgers $600 Direct materials $900 $800 Direct labor 200 600 700 Manufacturing overhead 250 750 875 $1,050 $2,250 $2,375

Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. Prepare a cost of goods manufactured schedule for June.

Answer 1

Q2. Q4. $15,1001 May 1 Bal. May 31 May 31 May 31 May 1 Bal. Work in Process Inventory $5,675 May 31 $4,700 $3,700 $4,625 $3,600 CASE INC. Cost of Goods Manufactured Schedule For the Month Ended June 30 Work In Process, June 1 5,675 Direct materials used $ 4,700 Direct Labor $ 3,700 Manufacturing OH applied $ 4,625 Total Manufacturing Cost $ 13,025 Total Cost of Work in process $ 18,700 Less: Work in process, June 30 $ 3,600 Cost of Goods Manufactured $ 15,100 Q3. Cost of Unfinished Job: KOSS; Direct Material: $1,800 Direct Labor: $800 MOH= $1,000 Cost of Unfinished Job:$3,600 Workings: Finished Goods Job No. Beginning WIP Direct Material Direct Labor Manuf. OH Total Rodgers Stevens Linton $1,050 $2,250 $2,375 $5,675 [$900+300] $400 $ $1,300 $ $2,900 [$800+400] [$800+400]*1.25 400 [$400]*1.25 $ 1,300 [$1,300]*1.25 $ $2,900 $3,625 $4,950 3,550 6,600 $15,100 *Manufacturing OH:-Direct Labor *$1.25

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Workings:

Q1. No. Credit Debit 4,700 $ Account titles and explanation 1 Raw Materials Inventory Accounts Payable (To record purchase of raw materials) $ 4,700 $ 5,100 Factory Labor Cash (To record factory labor costs) $ 5,100 $ 1,100 Work in process Inventory Accumulated Depreciation- Equipment Accounts Payable (To record MOH costs incurred) $ $ 800 300 S $ 4,700 1,400 2 Work in process Inventory Manufacturing Overhead Raw materials Inventory (To record the usage of raw materials) $ 6,100 3,700 $ $ 1,400 Work in process Inventory Manufacturing Overhead Factory Labor (To record the usage of factory labor) $ 5,100 S 4,625 Work in process Inventory Manufacturing Overhead (To record manufacturing overhead) DLH = $3,700*$1.25 $ 4,625

$ 15,100 $ 15,100 3 Finished Goods Inventory Work in process Inventory (To record completion of job) [$5,675+2,900+2,900+(2,900*1.25) 20,000 Cash Sales Revenue (To record sale of goods) $ 20,000 15,100 Cost of Goods Sold Finished Goods Inventory (To record cogs) $ 15,100

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