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 Work in Process Inventory $4,500 $5,800 Manufacturing Overhead Applied Manufacturing Overhead Incurred $35,300 $34,500 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Rodgers Stevens Direct materials $700 $700 Direct labor 400 600 Manufacturing overhead 500 750 $1,600 $2,050 Linton $800 600 750 $2,150 During June raw materials purchased on account were $4,700, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $800 and miscellaneous costs of $500 incurred on account.

Answer 1

3) Journal entries

Finished goods (3000+3000*1.25+2900+8700)	15450
Work in process inventory		15450
(To record completion of jobs)
Cash	20000
Sales revenue		20000
(to record sale of goods)
Cost of goods sold	15450
Finished goods		15450
(To record the cost of goods sold)

T account

Work in process inventory
Balance	5800	Completed work	15450
Direct material	3700
Direct labor	4700
Overhead applied	4625
Balance	3375

Schedule of cost of goods manufactured

Work in process, June 1		5800
Direct materials	4700
Direct labor	3700
Manufacturing overhead applied	4625
Total manufacturing cost		13025
Total cost of work in process		18825
Less: Work in process, June 30		-3375
Cost of goods manufactured		15450