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

Subsidiary data for Work in Process Inventory on June 1 are as follows.

Job Cost Sheets

Customer Job

Cost Element

Rodgers

Stevens

Linton

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

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)

(2)

(To record assignment of direct materials)

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

Explanation / Answer

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

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