Stellar Inc. is a construction company specializing in custom patios. The patios

Question

Stellar 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, 2014, the general ledger for Stellar Inc. contains the following data.

Raw Materials Inventory Work in Process Inventory $5,368 $7,080 Manufacturing Overhead Applied Manufacturing Overhead Incurred $41,714 $40,449 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 Gannon Rosenthal Linton $767 409 511 $1,687 $1,022 $1,150 741 927 $2,575 $2,818 690 863 During June, raw materials purchased on account were $6,262, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $895 and miscellaneous costs of $511 incurred on account. A summary of materials requisition slips and time tickets for June shows the following Customer Job Materials Requisition Time Tickets Gannorn Koss Rosenthal Linton Gannorn $1,022 2,556 639 1,661 383 6,261 1,917 $8,178 $575 1,022 460 1,534 498 4,089 1,534 $5,623 General use Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Gannon, Rosenthal, and Linton were completed during June and sold for a total of $24,154. Each customer paid in full

Explanation / Answer

Work In process Account

Note : if on sheet 6/30 Balance 4,855

Particulars Amount Particulars Amount 6/1 Balance ( Given) 7,080 June completed work ( Entry ii) 17,686 Direct Material ( Entry ii) 6,261 Direct Labor ( Given) 4,089 Oveer head applied ( Entry ii) 5,111 6/30 Balance ( Balancing Figure) 4,855 Total 22,541 Total 22,541

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