Question

Work in process inventory balance

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 4,494 Manufacturing Overhead Applied $34,925 Work in Process Inventory $5,928 Manufacturing Overhead Incurred $33,866 Subsidiary data for Work in Process Inventory on June 1 are as follows. ob Cost Sheets Customer Job Cost Element Direct materials Direct labor Rodgers Stevens Linton $642 $856 $963 578 621 Manufacturing overhead 428 722 776 $1,412 $2,156 $2,360 342 During June, raw materials purchased on account were $5,243, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $963 and miscellaneous costs of $428 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Customer Job Rodgers Koss Stevens Linton Rodgers Materials Requisition Slips $856 2,140 535 1,391 321 5,243 1,605 6,848 Time Tickets $ 910 856 385 1,284 417 3,852 1,284 $5,136 General use 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 $20,223. Each customer paid in full.

Answer 1

The posting required are as follows ;

1. the first entry on the account will be the opening stock of the work in process (debiting the balance b/d with 5928)
2. the next entry is the transfer of raw materials from the raw materials inventory account (debit raw materials inventory with 5243)
3. the subsequent two entries are the transfer of factory labor and assignment of manufacturing overhead (debit both the accounts with 3852 and 4815 respectively)
4. the next entry will be the transfer to finished goods ( credit finished goods inventory account with 15772)
5. the next transaction to be recorded will be closing the account and balancing the account

if you do not require to create an actual account and the requirements are limited to the posting of entries as in the question above you may skip the first and fifth posting