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		$ 4,536		Manufacturing Overhead Applied		$ 35,251
Work in Process Inventory		$ 5,983		Manufacturing Overhead Incurred		$ 34,182

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		$ 648		$ 864		$ 972
Direct labor		346		583		626
Manufacturing overhead		432		729		783
		$ 1,426		$ 2,176		$ 2,381

During June, raw materials purchased on account were $ 5,292, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $ 972 and miscellaneous costs of $ 432 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		$ 864		$ 918
Koss		2,160		864
Stevens		540		389
Linton		1,404		1,296
Rodgers		324		421
		5,292		3,888
General use		1,620		1,296
		$ 6,912		$ 5,184

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 $ 20,412. Each customer paid in full.

Partially correct answer iconYour answer is partially correct.

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.)

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)

eTextbook and Media

List of Accounts

Partially correct answer iconYour answer is partially correct.

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

Work in Process Inventory
6/1	BalanceCompleted WorkOverhead AppliedDirect MaterialsDirect Labor		June	BalanceOverhead AppliedCompleted WorkDirect MaterialsDirect Labor
	BalanceOverhead AppliedDirect LaborCompleted WorkDirect Materials
	BalanceOverhead AppliedCompleted WorkDirect MaterialsDirect Labor
	BalanceOverhead AppliedCompleted WorkDirect MaterialsDirect Labor
6/30	BalanceDirect LaborCompleted WorkOverhead AppliedDirect Materials

eTextbook and Media

List of Accounts

Incorrect answer iconYour answer is incorrect.

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

Costs of unfinished Job:    RodgersKossLintonStevens Direct Materials $  + Direct Labor $  + Manufacturing Overhead $  = $

eTextbook and Media

List of Accounts

Partially correct answer iconYour answer is partially correct.

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

CASE INC. Cost of Goods Manufactured Schedule   June 30, 2017For the Year Ended June 30, 2017For the Month Ended June 30, 2017
Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Raw Materials, June 1Raw Materials, June 30Finished Goods, June 1Finished Goods, June 30				$
Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Finished Goods, June 1Finished Goods, June 30Raw Materials, June 1Raw Materials, June 30		$
Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Raw Materials, June 1Raw Materials, June 30Finished Goods, June 1Finished Goods, June 30
Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Finished Goods, June 1Finished Goods, June 30Raw Materials, June 1Raw Materials, June 30
Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Raw Materials, June 1Raw Materials, June 30Finished Goods, June 1Finished Goods, June 30
Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Finished Goods, June 1Finished Goods, June 30Raw Materials, June 1Raw Materials, June 30
AddLess:    Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Raw Materials, June 30Raw Materials, June 1Finished Goods, June 1Finished Goods, June 30
Cost of Goods ManufacturedDirect LaborDirect Materials UsedManufacturing Overhead AppliedTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, June 1Work in Process, June 30Finished Goods, June 30Finished Goods, June 1Raw Materials, June 1Raw Materials, June 30				$

Answer 1

(A)

1

Journalize the June transactions for purchase of raw materials.

Raw Materials Inventory	5,292
Accounts Payable		5,292

Journalize the June transactions for factory labor costs.

Factory Labor	5,184
Cash		5,184

Journalize the June transactions for manufacturing overhead costs incurred.

Manufacturing Overhead	1,404
Accumulated Depreciation - Equipment		972
Accounts Payable		432

_____________________________

2

Journalize the June transactions for the assignment of direct materials.

Work in Process Inventory	5,292
Manufacturing Overhead	1,620
Raw Materials Inventory		6,912

Journalize the June transactions for the assignment of direct labor.

Work in Process Inventory	3,888
Manufacturing Overhead	1,296
Factory Labor		5,184

Journalize the June transactions for the assignment of overhead to production.

Work in Process Inventory ($3,888 * $1.25 per hour)	4,860
Manufacturing Overhead		4,860

__________________________________________________________

3

Journalize the June transactions for the completion of jobs..

Finished goods inventory	15,919
Work in process inventory		15,919

Job	Direct Material		Direct Labor		Manufacturing Overhead		Total Costs
Rodger	$1,836		$1,685		$2,106		$5,627
Stevens	1,404		972		1,215		3,591
Linton	2,376		1,922		2,403		6,701
							$15,919

Journalize the June transactions for the sale of goods.

Cash	20,412
Sales Revenues		20,412

Cost of Goods Sold	15,919
Finished Goods Inventory		15,919

_____________________________________________________

(b) Post the entries to Work in Process Inventory.

.

Work in Process Inventory
6/1/17	Balance	5,983	6/30/17	Completed	15,919
	DM	5,292
	DL	3,888
	OH applied	4,860
6/30/17	Balance	4,104

(c) Reconcile the balance in Work in Process Inventory with the costs of unfinished goods.

(d) Prepare a cost of goods manufactured schedule for June.

CASE INC.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
Work in process, June 1		$5,983
Direct materials used	$5,292
Direct labor	3,888
Manufacturing overhead applied	4,860
Total manufacturing costs		14,040
Total cost of work in process		20,023
Less: Work in process, June 30		4,104
Cost of goods manufactured		$15,919