Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 5,040 Manufacturing Overhead Applied $ 39,168
Work in Process Inventory $ 6,648 Manufacturing Overhead Incurred $ 37,980

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 $ 720 $ 960 $ 1,080
Direct labor 384 648 696
Manufacturing overhead 480 810 870
$ 1,584 $ 2,418 $ 2,646

During June, raw materials purchased on account were $ 5,880 , and all wages were paid. Additional overhead costs consisted of depreciation on equipment $ 1,080 and miscellaneous costs of $ 480 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 $ 960 $ 1,020
Koss 2,400 960
Stevens 600 432
Linton 1,560 1,440
Rodgers 360 468
5,880 4,320
General use 1,800 1,440
$ 7,680 $ 5,760

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 $ 22,680 . 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.)

Post the entries to Work in Process Inventory. (Round answers to 0 decimal places, e.g. 2,500.)

Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. (Round answers to 0 decimal places, e.g. 2,500.)

Prepare a cost of goods manufactured schedule for June. (Round answers to 0 decimal places, e.g. 2,500.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Complete Handbook Of Operational And Management Auditing

Authors: William T. Thornhill

1st Edition

0131611410, 978-0131611412

More Books

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago

Question

What are negative messages? (Objective 1)

Answered: 1 week ago