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Exercise #2 Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer

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Exercise #2 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 $4,200 Work in Process Inventory $5.540 Finished Goods Inventory SO Factory Overhead $990 CR The beginning work in process inventory consists of three jobs: Rodgers $1,320, Stevens $2,015; and Linton $2,205. The following transactions took place during June: 1. During June, raw materials purchased on account were $5,100. 2. Total factory labor charges were 54,800 and all wages were paid in cash. 3. A summary of materials requisition slips and time tickets for Junc shows the following: Materials Requisition Time Customer Job Slips Tickets Rodgers $ 1,100 $ 1.240 Koss 2,000 800 Stevens 500 360 Linton 1,300 1.200 sub-totals $ 4,900 $ 3.600 General use 1,500 1.200 Totals $ 6,400 S 4.800 4. The pre-determined overhead rate is $1.25 per dollar of direct labor cost (or 125% of direct labor cost). 5. Additional overhead costs included $900 depreciation on factory equipment and $400 of miscellaneous costs incurred on account 6. The patios for customers Rodgers, Stevens, and Linton were completed during June and were then sold for a total of $38,900 cash. Instructions A Enter the transactional data in the cost flow T-accounts and job cost sheets B. Prepare the required journal entries for the transactions in the general journal. C. Verify the ending balances of the Work in Process by reconciling to the job cost sheets. How will the under or over-applied overhead be reported on the financial statements at the end of the month? D Raw Materials Inventory Factory Payroll Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Expense Factory Overhead Stevens Koss JOB NO. Rodgers Beg DM DL OH Total JOB NO. Linton Beg DM JOB NO. Beg DM DL OH Total JOB NO. Beg DM DL DL OH Total OH Total GENERAL JOURNAL GENERAL JOURNAL

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