Question

Problem 15-3A (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, 2017, the general ledger for Case Inc. contains the following data. Raw Materials Inventory $4,620 Manufacturing Overhead Applied $35,904 Work in Process Inventory $6,095 Manufacturing Overhead Incurred $34,815 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 $660 $880 $990 Direct labor 352 594 638 Manufacturing overhead 440 743 798 $1,452 $2,217 $2,426 During June, raw materials purchased on account were $5,390, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $990 and miscellaneous costs of $440 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 $880 $935 Koss 2,200 880 Stevens 550 396 Linton 1,430 1,320 Rodgers 330 429 5,390 3,960 General use 1,650 1,320 $7,040 $5,280 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 $20,790. Each customer paid in full. (a) 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.

Answer 1

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Journal Entries:
Event	Account	Debit	Credit
1	Raw Material Inventory	$    5,390
	Accounts Payable		$    5,390
	(purchase of raw material on account)
1	Factory Labor	$    5,280
	Cash		$    5,280
	(being factory labor paid in cash)
1	Manufacturing Overheads	$    1,430
	Accumulated Depreciation -Equipment		$       990
	Accounts Payable		$       440
	(being manufacturing overhead incurred)
2	Work in Process Inventory	$    5,390
	Manufacturing Overheads	$    1,650		General Use Material
	Raw Material Inventory		$    7,040
	(assignment of Material)
2	Work in Process Inventory	$    3,960
	Manufacturing Overheads	$    1,320		General Use Material
	Factory Labor		$    5,280
	(assignment of Labor)
2	Work in Process Inventory	$    4,950		3960*1.25
	Manufacturing Overheads		$    4,950
	(Overhead applied)
3	Finished Goods Inventory	$ 16,214
	Work in Process Inventory		$ 16,214
	(transferred to Finished Goods)
		Direct	Direct	Manufacturing
		Material	Labor	Overhead 1.25* Labor	Total
	Rodgers (Beginning WIP+Requistion)	$    1,870	$    1,716	$                         2,145	$    5,731
	Stevens (Beginning WIP+Requistion)	$    1,430	$       990	$                         1,238	$    3,658
	Linton (Beginning WIP+Requistion)	$    2,420	$    1,958	$                         2,448	$    6,826
	Total	$    5,720	$    4,664	$                         5,830	$ 16,214
3	Cash	$ 20,790
	Sales		$ 20,790
	(being sale recorded)
3	Cost of Goods Sold	$ 16,214
	Finished Goods Inventory		$ 16,214
	(Being cost of goods sold recorded)