Problem 20-3A

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, 2017, the general ledger for Case Inc. contains the following data.

Raw Materials Inventory $4,368 Manufacturing Overhead Applied $33,946

Work in Process Inventory $5,762 Manufacturing Overhead Incurred $32,916

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 $624 $832 $936

Direct labor 333 562 603

Manufacturing overhead 416 702 754

$1,373 $2,096 $2,293

During June, raw materials purchased on account were $5,096, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $936 and miscellaneous costs of $416 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 $832 $884

Koss 2,080 832

Stevens 520 374

Linton 1,352 1,248

Rodgers 312 406

5,096 3,744

General use 1,560 1,248

$6,656 $4,992

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 $19,656. 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. Round answers to 0 decimal places, e.g. 2,500.)

No.

Account Titles and Explanation

Debit

Credit

(1)

Raw Materials Inventory

Accounts Payable

(To record purchase of raw materials)

Factory Labor

Cash

(To record factory labor costs paid)

Manufacturing Overhead

Accumulated Depreciation-Equipment

Accounts Payable

(To record manufacturing overhead costs incurred)

(2)

Work in Process Inventory

Manufacturing Overhead

Raw Materials Inventory

(To record assignment of direct materials)

Work in Process Inventory

Manufacturing Overhead

Factory Labor

(To record assignment of factory labor)

Work in Process Inventory

Manufacturing Overhead

(To record assignment of manufacturing overhead)

(3)

Finished Goods Inventory

Work in Process Inventory

(To record completion of jobs)

Cash

Sales Revenue

(To record sale of goods)

Cost of Goods Sold

Finished Goods Inventory

(To record the cost of goods sold)

SHOW LIST OF ACCOUNTS

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Post the entries to Work in Process Inventory. (Round answers to 0 decimal places, e.g. 2,500.)

Work in Process Inventory

6/1

June

6/30

SHOW LIST OF ACCOUNTS

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Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. (Round answers to 0 decimal places, e.g. 2,500.)

Costs of unfinished Job: Direct Materials $

+ Direct Labor $

+ Manufacturing Overhead $

= $

SHOW LIST OF ACCOUNTS

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Prepare a cost of goods manufactured schedule for June. (Round answers to 0 decimal places, e.g. 2,500.)

CASE INC.

Cost of Goods Manufactured Schedule

$

$

:

$