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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, 2020, the general ledger for Case Inc. contains the following data.

Raw Materials Inventory $4,400 Manufacturing Overhead Applied $34,100
Work in Process Inventory $5,550 Manufacturing Overhead Incurred $34,300

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 $500 $900 $1,000
Direct labor 200 500 700
Manufacturing overhead 250 625 875
$950 $2,025 $2,575

During June, raw materials purchased on account were $5,100, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $800 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 $700 $700
Koss 2,100 700
Stevens 500 400
Linton 1,400 1,300
Rodgers 400 400
5,100 3,500
General use 1,300 1,200
$6,400 $4,700

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 $20,800. 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.

image text in transcribedimage text in transcribed

No. Account Titles and Explanation Debit Credit (1) (To record purchase of raw materials) (To record factory labor costs paid) (To record manufacturing overhead costs incurred) (2) (To record assignment of direct materials) (To record assignment of factory labor) (To record assignment of manufacturing oyerhead) (3) (To record completion of jobs) (To record sale of goods) (To record the cost of goods sold)

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