Question
Problem 15-03A (Part Level Submission) Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber,
Problem 15-03A (Part Level Submission)
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$3,800Manufacturing Overhead Applied$34,900Work in Process Inventory$5,775Manufacturing Overhead Incurred$30,800
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$700$700$1,000Direct labor300600600Manufacturing overhead375750750$1,375$2,050$2,350
During June, raw materials purchased on account were $5,100, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900and miscellaneous costs of $400incurred 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$900Koss2,200800Stevens500300Linton1,4001,200Rodgers3003005,1003,500General use1,6001,200$6,700$4,700
Overhead was charged to jobs at the same rate of $1.25per dollar of direct labor cost. The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $20,600. 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.)
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 overhead)(3)
(To record completion of jobs)
(To record sale of goods)
(To record the cost of goods sold)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started