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 $3,800 Manufacturing Overhead Applied $34,900 Work in Process Inventory $5,775 Manufacturing Overhead Incurred $30,800 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 $700 $1,000 Direct labor 300 600 600 Manufacturing overhead 375 750 750 $1,375 $2,050 $2,350 During June, raw materials purchased on account were $5,100, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 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 $900 Koss 2,200 800 Stevens 500 300 Linton 1,400 1,200 Rodgers 300 300 5,100 3,500 General use 1,600 1,200 $6,700 $4,700 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 $20,600. Each customer paid in full. (a) 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) di (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) List of Accounts

Answer 1

No.	Account titles and explanation	Debit	Credit
1)	Raw materials inventory	$5100
	Accounts payable		$5100
	(To record purchase of raw materials)
	Factory labor	$4700
	Cash		$4700
	(To record factory labor costs paid)
	Manufacturing overhead	$1300
	Accumulated depreciation- Equipment		$900
	Accounts payable		$400
	(To record manufacturing overhead costs incurred)
2)	Work in process inventory	$5100
	Manufacturing overhead	$1600
	Raw materials inventory		$6700
	(To record assignment of direct materials)
	Work in process inventory	$3500
	Manufacturing overhead	$1200
	Factory labor		$4700
	(To record assignment of factory labor)
	Work in process inventory (3500*$1.25)	$4375
	Manufacturing overhead		$4375
	(To record assignment of manufacturing overhead)
3)	Finished goods inventory	$14750
	Work in process inventory		$14750
	(To record completion of jobs)
	Cash	$20600
	Sales revenue		$20600
	(To record sale of goods)
	Cost of goods sold	$14750
	Finished goods inventory		$14750
	(To record the cost of goods sold)

Calculation of Finished goods inventory

Finished goods inventory= Rodgers+Stevens+Linton

Rodgers= Beginning balance+Direct materials+Direct labor+Manufacturing overhead

= $1375+700+300+900+300+(900+300)*$1.25= $5075

Stevens= $2050+500+300+300*$1.25= $3225

Linton= $2350+1400+1200+1200*$1.25= $6450

Finished goods inventory= $5075+3225+6450= $14750

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