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Problem 15-3A Stellar Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer
Problem 15-3A Stellar 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 2014, the general ledger for Stellar Inc. contains the following data Raw Materials Inventory Work in Process Inventory $4,200 $5,540 Manufacturing Overhead Applied Manufacturing Overhead Incurred $32,640 $31,650 Subsidiary data for Work in Process Inventory on June 1 are as follows Job Cost Sheets Customer Job Cost Element Direct materials Direct labor Manufacturing overhead Gannorn Rosenthal Linton $600 320 400 $1,320 $900 580 725 $2,015 $2,205 $800 540 675 During June, raw materials purchased on account were $4,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $700 and miscellaneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following Materials Requisition Time Tickets Customer 0 Gannon Koss Rosenthal Linton Gannon $800 2,000 500 1,300 300 4,900 1,500 $6,400 $450 800 360 1,200 390 3,200 1,200 $4,400 General use Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Gannon, Rosenthal, and Linton were completed during June and sold for a total of $18,900. Each customer paid in full
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