Enos Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick,

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Enos Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fibre glass, and lumber, depending on customer preference. On June 1, 2012, the general ledger for Enos Inc. contains the following data:

Enos Inc. is a construction company specializing in custom patios.

Subsidiary data for Work in Process Inventory on June 1 are as follows:

Enos Inc. is a construction company specializing in custom patios.

During June, raw materials purchased on account were $3,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment of $700 and miscellaneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following:

Enos Inc. is a construction company specializing in custom patios.

Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labour cost. The patios for customers Fowler, Haines, and Krantz were completed during June and sold for a total of $18,900. Each customer paid in full.
Instructions
(a) Journalize the June transactions for the following:
1. Purchase of raw materials, factory labour costs incurred, and manufacturing overhead costs incurred
2. Assignment of direct materials, labour, and overhead to production
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 jobs.
(d) Prepare a cost of goods manufactured schedule for June.

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Managerial Accounting Tools for Business Decision Making

ISBN: 978-1118033890

3rd Canadian edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

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