Problem 16-3A

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		$ 5,208		Manufacturing Overhead Applied		$ 40,474
Work in Process Inventory		$ 6,870		Manufacturing Overhead Incurred		$ 39,246

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		$ 744		$ 992		$ 1,116
Direct labor		397		670		719
Manufacturing overhead		496		837		899
		$ 1,637		$ 2,499		$ 2,734

During June, raw materials purchased on account were $ 6,076 , and all wages were paid. Additional overhead costs consisted of depreciation on equipment $ 1,116 and miscellaneous costs of $ 496 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		$ 992		$ 1,054
Koss		2,480		992
Stevens		620		446
Linton		1,612		1,488
Rodgers		372		484
		6,076		4,464
General use		1,860		1,488
		$ 7,936		$ 5,952

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 $ 23,436 . Each customer paid in full.

0:13 PM Thu Now 15 1,336 416 and total 23,436 Each