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 $4,200 Manufacturing Overhead Applied $32,640 Work in Process Inventory $5,540 Manufacturing Overhead Incurred $31,650 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 $600 $800 $900 Direct labor 320 540 580 Manufacturing overhead 400 675 725 $1,320 $2,015 $2,205 During June, raw materials purchased on account were $4,900, 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 $800 $850 Koss 2,000 800 Stevens 500 360 Linton 1,300 1,200 Rodgers 300 390 4,900 3,600 General use 1,500 1,200 $6,400 $4,800 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 $18,900. 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) (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

(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)	Raw material	4900
	Account payable		4900
	(To record purchase of raw materials)
	Factory labor	4800
	Cash		4800
	(To record factory labor costs paid)
	Manufacturing overhead	1300
	Accumulated depreciation-equipment		900
	Miscellaneous Cost		400
	(To record manufacturing overhead costs incurred)
(2)	Work in process	4900
	Manufacturing overhead	1500
	Raw material		6400
	(To record assignment of direct materials)
	Work in process	3600
	Manufacturing overhead	1200
	Factory labor		4800
	(To record assignment of factory labor)
	Work in process (3600*1.25)	4500
	Manufacturing overhead		4500
	(To record assignment of manufacturing overhead)
(3)	Finished goods	14740
	Work in process		14740
	(To record completion of jobs)
	Cash	18900
	Sales revenue		18900
	(To record sale of goods)
	Cost of goods sold	14740
	Finished goods		14740
	(To record the cost of goods sold)