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		$ 4,326		Manufacturing Overhead Applied		$ 33,619
Work in Process Inventory		$ 5,706		Manufacturing Overhead Incurred		$ 32,600

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		$ 618		$ 824		$ 927
Direct labor		330		556		597
Manufacturing overhead		412		695		747
		$ 1,360		$ 2,075		$ 2,271

During June, raw materials purchased on account were $ 5,047, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $ 927 and miscellaneous costs of $ 412 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		$ 824		$ 876
Koss		2,060		824
Stevens		515		371
Linton		1,339		1,236
Rodgers		309		402
		5,047		3,709
General use		1,545		1,236
		$ 6,592		$ 4,945

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 $ 19,467. 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.)

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

	Sl No.	Account titles			Debit	Credit
	1	Raw materials inventory			5047
		Accounts payable				5047
		(To record purchase of raw materials)
		Salaries and Wages expense			4945
		Cash				4945
		(To record factory labor costs paid)
		Manufacturing overhead			1339
		Accumulated depreciation				927
		Other costs				412
		(To record manufacturing overhead costs incurred)
	2	Work-in-process inventory			5047
		Manufacturing overhead			1545
		Raw materials inventory				6592
		(To record assignment of direct materials)
		Work-in-process inventory			3709
		Manufacturing overhead			1236
		Salaries and Wages expense				4945
		(To record assignment of factory labor)
		Work-in-process inventory			4636
		Manufacturing overhead		(3709*1.25)		4636
		(To record assignment of manufacturing overhead)
	3	Finished goods inventory (Note:1)			15184
		Work-in-process inventory				15184
		(To record completion of jobs)
		Accounts receivable			19467
		Sales				19467
		(To record sale of goods)
		Cost of goods sold			15184
		Finished goods inventory				15184
		(To record the cost of goods sold)
	Note:1- Computation of cost of completed jobs
	Completed jobs are Rodgers,Steven and Linton
					Rodgers	Steven	Linton
	Beginning balance				1360	2075	2271
	Add:
	Direct material				1133	515	1339
					(824+309)
	Direct labor				1278	371	1236
					(876+402)
	Manufacturing overhead (1.25*Direct labor cost)				1597.5	463.75	1545
	Total				5368.5	3424.75	6391
							15184.25