Job Cost Sheets Customer Job Cost Element Rodgers Stevens Linton Customer Job Ma
ID: 2471675 • Letter: J
Question
Job Cost Sheets
Customer Job
Cost Element
Rodgers
Stevens
Linton
Customer Job
Materials Requisition Slips
Time Tickets
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.
Post the entries to Work in Process Inventory. Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. Prepare a cost of good manufactured schedule for June.
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 $ 4,914 Manufacturing Overhead Applied $ 38,189 Work in Process Inventory $ 6,482 Manufacturing Overhead Incurred $ 37,031
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 $ 702 $ 936 $ 1,053 Direct labor 374 632 679 Manufacturing overhead 468 790 848 $ 1,544 $ 2,358 $ 2,580During June, raw materials purchased on account were $ 5,733 , and all wages were paid. Additional overhead costs consisted of depreciation on equipment $ 1,053 and miscellaneous costs of $ 468 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 $ 936 $ 995 Koss 2,340 936 Stevens 585 421 Linton 1,521 1,404 Rodgers 351 456 5,733 4,212 General use 1,755 1,404 $ 7,488 $ 5,616Overhead 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 $ 22,113 . Each customer paid in full.
Explanation / Answer
Work in process Account
Cost of Goods Manufactured:
Accounts Title Debit $ Credit $ Raw Material 5733 Accounts Payable 5733 Labor Cost 5616 Cash 5616 Manufacturing Overhead 4680 Indirect material 1755 Indirect labor 1404 Depreciation 1053 Misc. costs 468 Work in Process 15210 Raw material 5733 Direct Labor 4212 Manufacturing Overhead 5265 Finished Goods Inventory 17246 WIP Inventory 17246 (opening balance= 6482 + cost incurred = 3393 + 3276 + 4035) Cash 22113 Sales 22113 Cost of Goods sold 17246 Finished Goods 17246Related Questions
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