In: Accounting
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 | $4,100 | Manufacturing Overhead Applied | $33,800 | |||
Work in Process Inventory | $5,675 | Manufacturing Overhead Incurred | $28,600 |
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 | $900 | $800 | |||
Direct labor | 200 | 600 | 700 | |||
Manufacturing overhead | 250 | 750 | 875 | |||
$1,050 | $2,250 | $2,375 |
During June, raw materials purchased on account were $4,700, and
all wages were paid. Additional overhead costs consisted of
depreciation on equipment $800 and miscellaneous costs of $300
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 | $900 | $800 | ||
Koss | 1,800 | 800 | ||
Stevens | 400 | 400 | ||
Linton | 1,300 | 1,300 | ||
Rodgers | 300 | 400 | ||
4,700 | 3,700 | |||
General use | 1,400 | 1,400 | ||
$6,100 | $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
$20,000. Each customer paid in full.
Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. Prepare a cost of goods manufactured schedule for June.