P15-3A Case Inc. is a construction company specializing in custom patios. The patio constructed of concrete, brick, fiberglass, and lumber, depending upon customer preter ence. On June 1, 2017, the general ledger for Case Inc. contains the following data. Raw Materials Inventory $4,200 Manufacturing Overhead Applied Work in Process Inventory $5,540 Manufacturing Overhead Incurred $31,050 $32,640 Subsidiary data for Work in Process Inventory on June 1 are as follows. Cost Element Direct materials 00000 Direct labor Manufacturing overhead Job Cost Sheets Customer Job Rodgers Stevens $ 600 da $ 800 320 400 675 $1,320 $2,015 540 Linton $ 900 580 725 $2,205 During June, raw materials purchased on account were $4,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscel- laneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Customer Job Rodgers Materials Requisition Slips $ 800 Koss 2,000 Stevens Linton Rodgers 500 1,300 300 4,900 1,500 $6,400 Time Tickets $ 850 800 360 1,200 390 3,600 1,200 $4,800 General use Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labe The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18,900. Each customer paid in full. Instructions (a) Journalize the June transactions: (1) for purchase of raw materials, factory labore incurred, and manufacturing overhead costs incurred; (2) assignment of direct mata labor, and overhead to production, and (3) completion of jobs and sale of goods (b) Post the entries to Work in process Inventory. (c) Reconcile the balance in Work in Process Inventory with the costs of unfinished job (d) Prepare a cost of goods manufactured schedule for June. P15-4A Agassico 13-A Agassi Company uses a job order cost system in each of its three manufacturin departments. Manufacturing overhead is applied to jobs on the basis of direct labc cost in Department D, direct labor hours in Department E, and machine hours 1 Department K In establishing the predetermined overhead rates for 2017, the following estimate were made for the year. Department Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,200,000 $1,500,000 100,000 400,000 $1,500,000 $1,250,000 125,000 500,000 K $900,000 $450,000 40,000 120,000 During January, the job cost sheets showed the following costs and production data. Department Direct materials used $140,000 $126,000 $78,000 Direct labor costs $120.000 $110,000 $37,500 Manufacturing overhead incurred $ 99,000 $124,000 $79,000 Direct labor hours 8,000 11,000 3,500 Machine hours SODE 34,000 45,000 10,400 Instructions (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing costs assigned to jobs in January in each department. (e) Compute the under or overapplied overhead for each department at January 31. P15-5A Phillips Corporation's fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year 16,850 Raw Materials Inventory Dec. 1 Beginning balance (a) Dec. 31 Requisitions 31 Purchases 17,225 Dec. 31 Ending balance 7,975 Work in Process Inventory Dec. 1 Beginning balance (5) Dec. 31 Jobs completed 31 Direct materials - (c) 31 Direct labor 8,400 31 Overhead (d)
