Problem 2-3A (Video)

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, 2020, the general ledger for Case Inc. contains the following data.

Raw Materials Inventory		$4,400		Manufacturing Overhead Applied		$34,100
Work in Process Inventory		$5,550		Manufacturing Overhead Incurred		$34,300

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

During June, raw materials purchased on account were $5,100, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $800 and miscellaneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following.

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 $20,800. 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.) Post the entries to Work in Process Inventory. (Post the entries to Work in Process Inventory in the order presented in the problem.)

Job Cost Sheets Customer Job Rodgers Stevens Linton $1,000 Cost Element Direct materials Direct labor Manufacturing overhead $900 500 700 $500 200 250 $950 625 875 $2,025 $2,575 Customer Job Materials Requisition Slips Time Tickets $700 700 Rodgers Koss Stevens Linton Rodgers $700 2,100 500 1,400 400 400 1,300 400 General use 5,100 1,300 $6,400 3,500 1,200 $4,700 Debit Credit No. Account Titles and Explanation (1) (To record purchase of raw materials) (To record factory labor costs paid) (To record manufacturing overhead costs incurred) (2) (To record assignment of direct materials) (To record assignment of factory labor) (To record assignment of manufacturing overhead) (3) (To record completion of jobs) (To record sale of goods) (To record the cost of goods sold) Work in Process Inventory 6/1 June 6/30 Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. Costs of unfinished Job: Direct Materials $ + Direct Labor $ + Manufacturing Overhead $ Prepare a cost of goods manufactured schedule for June. CASE INC. Cost of Goods Manufactured Schedule $ 7 $ Click if you would like to Show Work for this question: Open Show Work