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		$4,600		Manufacturing Overhead Applied		$35,000
Work in Process Inventory		$5,425		Manufacturing Overhead Incurred		$29,800

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		$700		$900		$900
Direct labor		300		500		500
Manufacturing overhead		375		625		625
		$1,375		$2,025		$2,025

During June, raw materials purchased on account were $5,000, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $500 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		$800
Koss		1,900		900
Stevens		600		400
Linton		1,400		1,400
Rodgers		400		500
		5,000		4,000
General use		1,500		1,100
		$6,500		$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 $20,200. 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.)

No.	Account Titles and Explanation	Debit	Credit
(1)
	(To record purchase of raw materials)
	(To record factory labor costs paid)
	(To record manufacturing overhead costs incurred)
(2)
	(To record assignment of direct materials)
	(To record assignment of factory labor)
	(To record assignment of manufacturing overhead)
(3)
	(To record completion of jobs)
	(To record sale of goods)
	(To record the cost of goods sold)

Answer 1

No.	Account Titles and Explanation	Debit	Credit
(1)	Raw material	5000
	Account payable		5000
	(To record purchase of raw materials)
	Factory labor	5100
	Cash		5100
	(To record factory labor costs paid)
	Manufacturing overhead	1400
	Accumulated depreciation-equipment		900
	Account payable		500
	(To record manufacturing overhead costs incurred)
(2)	Work in process	5000
	Manufacturing overhead	1500
	Raw material		6500
	(To record assignment of direct materials)
	Work in process	4000
	Manufacturing overhead	1100
	Factory labor		5100
	(To record assignment of factory labor)
	Work in process (4000*1.25)	5000
	Manufacturing overhead		5000
	(To record assignment of manufacturing overhead)
(3)	Finished goods	15500
	Work in process		15500
	(To record completion of jobs)
	Cash	20200
	Sales revenue		20200
	(To record sale of goods)
	Cost of goods sold	15500
	Finished goods		15500
	(To record the cost of goods sold)