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, 2017, the general ledger for Case Inc. contains the following data.

Raw Materials Inventory		$ 5,040		Manufacturing Overhead Applied		$ 39,168
Work in Process Inventory		$ 6,648		Manufacturing Overhead Incurred		$ 37,980

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		$ 720		$ 960		$ 1,080
Direct labor		384		648		696
Manufacturing overhead		480		810		870
		$ 1,584		$ 2,418		$ 2,646

During June, raw materials purchased on account were $ 5,880 , and all wages were paid. Additional overhead costs consisted of depreciation on equipment $ 1,080 and miscellaneous costs of $ 480 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		$ 960		$ 1,020
Koss		2,400		960
Stevens		600		432
Linton		1,560		1,440
Rodgers		360		468
		5,880		4,320
General use		1,800		1,440
		$ 7,680		$ 5,760

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 $ 22,680 . 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. Round answers to 0 decimal places, e.g. 2,500.)

Post the entries to Work in Process Inventory. (Round answers to 0 decimal places, e.g. 2,500.)

Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. (Round answers to 0 decimal places, e.g. 2,500.)

Prepare a cost of goods manufactured schedule for June. (Round answers to 0 decimal places, e.g. 2,500.)

Answer 1

No	Account titles and Explanation				Debit	Credit
1	Raw materials inventory				5,880
	Accounts payable					5,880
	Factory wages				5,760
	cash					5,760
	manufacturing overhead				1,560
	Accumulated depreciation					1080
	Accounts payable					480
2)	Work in process inventory				5,880
	manufacturing overhead				1,800
	Raw materials inventory					7,680
	work in process invenory				4,320
	manufacturing overhead				1,440
	Factory wages					4,800
	work in process inventory				5400
	manufacturing overhead					5,400
3)	finished goods				17,688
	work in process					17,688
	Accounts receivable				22,680
	sale					22,680
	cost of goods sold				17,688
	finished goods inventory					17,688
		Work in process inventory
	1-Jun	opening	6,648	june	finished	17,688
		DM	5,880
		DL	4,320
		OH applied	5,400
	30-Jun		4,560
cost of unfinished jobs		koss	direct mat	2,400	direct lab	960	moh	1200	=	4,560
		Cost of goods manufactured Schedule
	Beginning work in process					6,648
	direct materials				5,880
	direct labor				4,320
	overhead applied				5,400
	total manufacturing costs					15,600
	total manufacturing costs & opening WIP					22,248
	less:ending work in process inventor					4,560
	cost of goods manufactured					17,688