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		$4,400		Manufacturing Overhead Applied		$31,800
Work in Process Inventory		$5,450		Manufacturing Overhead Incurred		$30,200

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		$700		$1,000
Direct labor		300		500		600
Manufacturing overhead		375		625		750
		$1,275		$1,825		$2,350

During June, raw materials purchased on account were $5,100, 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		$700		$900
Koss		2,200		900
Stevens		500		400
Linton		1,400		1,200
Rodgers		300		400
		5,100		3,800
General use		1,600		1,300
		$6,700		$5,100

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.

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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Post the entries to Work in Process Inventory. (Post the entries to Work in Process Inventory in the order presented in the problem.)

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

Answer 1

Q1. No. Credit Debit 5100 Account titles and explanation 1 Raw Materials Inventory Accounts Payable (To record purchase of raw materials) 5100 5100 Factory Labor Cash (To record factory labor costs) 5100 1300 Work in process Inventory Accumulated Depreciation- Equipment Accounts Payable (To record MOH costs incurred) 900 400

$5,100 $1,600 2 Work in process Inventory Manufacturing Overhead Raw materials Inventory (To record the usage of raw materials) $6,700 $3,800 $1,300 Work in process Inventory Manufacturing Overhead Factory Labor (To record the usage of factory labor) $5,100 $4,750 Work in process Inventory Manufacturing Overhead (To record manufacturing overhead) $3,800*$1.25 $4,750 $14,875 3 Finished Goods Inventory Work in process Inventory (To record completion of job)[$5,450+2,900+2,900+(2,900*1.25) $14,875 18900 Cash Sales Revenue (To record sale of goods) 18900 $14,875 Cost of Goods Sold Finished Goods Inventory (To record cogs) $14,875

Q4. $14,875 Q2. Work in Process Inventory May 1 Bal. $5,450 May 31 May 31 $5,100 May 31 $3,800 May 31 $4,750 May 1 Bal. $4,225 5,450 CASE INC. Cost of Goods Manufactured Schedule For the Month Ended June 30 Work In Process, June 1 $ Direct materials used $ 5,100 Direct Labor $ 3,800 Manufacturing OH applied $ 4,750 Total Manufacturing Cost $ Total Cost of Work in process $ Less: Work in process, June 30 $ Cost of Goods Manufactured $ 13,650 19,100 4,225 14,875 Q3. Cost of Unfinished Job: KOSS; Direct Material: $2,200 Direct Labor: $900 MOH= $1,125 Cost of Unfinished Job:$4,225 Total Workings: Finished Goods Beginning Direct Direct Manufactu Job No. WIP Material Labor ring OH Rodgers $1,275 $1,000 $1,300 $1,625 Stevens $1,825 500 400 $500 Linton $2,350 1400 1200 $1,500 $5,450 $2,900 $2,900 $3,625 $5,200 $3,225 $6,450 $14,8751 *Manufacturing OH:-Direct Labor *$1.25

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