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Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete,...

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 $ ____________

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