Case Inc. is a construction company specializing in custom patios. The patios ar

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 Work in Process Inventory $4,600 Manufacturing Overhead Applied $5,350 Manufacturing Overhead Incurred 35,400 $32,100 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Direct materials Direct labor Manufacturing overhead Rodgers Stevens Linton $600 300 375 1,275 $700 500 625 $1,825 $900 600 750 $2,250 During June, raw materials purchased on account were $4,700, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $1,000 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 Koss Stevens Linton Rodgers 800 1,800 400 1,300 400 4,700 1,400 $6,100 $800 900 300 1,300 400 3,700 1,000 $4,700 General use 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 $ 20,600. Each customer paid in full.

Explanation / Answer

No. Account titles and explanation Debit Credit 1 Raw materials inventory 4700 Accounts payable 4700 (To record purchase of raw materials) Factory labor 4700 Cash 4700 (To record labor cost paid) Manufacturing overhead 1400 Accumulated depreciation 1000 accrued expense 400 (To record manufacturing overhead cost incurred) 2 Work in process inventory 4700 Manufacturing overhead 1400 Raw materials inventory 6100 (To record assignment of direct materials) Work in process inventory 3700 Manufacturing overhead 1000 Factory labor 4700 (To record assignment of factory labor) Work in process inventory 4625 Manufacturing overhead 4625 ($1.25*Direct labor cost=1.25*3700) (To record assignment of manufacturing overhead) 3 Finished goods inventory (Note:1) 14550 Work in process inventory 14550 (To record completion of Jobs) Cash 20600 Sales revenue 20600 (To record sale of goods) Cost of goods sold 14550 Finished goods inventory 14550 Work in process inventory Date Particulars Debit Date Particulars Credit 01-Jun Balance 5350 June Completed work (Note:1) 14550 Direct materials 4700 Balance 3825 Direct labor 3700 Overhead applied 4625 Total 18375 Total 18375 Note:1- Cost of completed Jobs Rodgers Steven Linton Beginning balance 1275 1825 2250 Direct materials 1200 400 1300 Direct labor 1200 300 1300 Overhead applied (1.25*direct labor) 1500 375 1625 Total cost 5175 2900 6475 14550 Reconcile the balance in work in process inventory with the cost of unfunushed jobs Cost of unfinished job-Koss $ Direct materials 1800 Direct labor 900 Overhead applied (1.25*direct labor) 1125 Total cost 3825 Cost of goods manufactured schedule $ $ Work in process, June 1 5350 Direct materials used 4700 Direct labor 3700 Manufacturing overhead applied 4625 Total manufacturing costs 13025 Total cost of work in process 18375 Less: Work in process June 30 3825 Cost of goods manufactured 14550

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.