In: Accounting
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) |
Post the entries to Work in Process Inventory. (Post
the entries to Work in Process Inventory in the order presented in
the problem.)
Work in Process Inventory |
|||||
6/1 | June | ||||
6/30 | |||||
Reconcile the balance in Work in Process Inventory with the
costs of unfinished jobs.
Costs of unfinished Job: ________ Direct Materials $ ________ + Direct Labor $ ____________ |