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 $ 3,900 Manufacturing Overhead Applied $ 35,600 Work in Process Inventory $ 5,975 Manufacturing Overhead Incurred $ 29,400 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 $ 700 $ 900 $ 1,000 Direct labor 300 500 700 Manufacturing overhead 375 625 875 $ 1,375 $ 2,025 $ 2,575 During June, raw materials purchased on account were $ 4,600, 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. Customer Job Materials Requisition Slips Time Tickets Rodgers $ 700 $ 900 Koss 1,800 700 Stevens 500 400 Linton 1,300 1,300 Rodgers 300 400 4,600 3,700 General use 1,500 1,200 $ 6,100 $ 4,900 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 $ 18,500. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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		$ 3,900		Manufacturing Overhead Applied		$ 35,600
Work in Process Inventory		$ 5,975		Manufacturing Overhead Incurred		$ 29,400

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	$ 700	$ 900	$ 1,000
Direct labor	300	500	700
Manufacturing overhead	375	625	875
	$ 1,375	$ 2,025	$ 2,575

During June, raw materials purchased on account were $ 4,600, 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.

Customer Job	Materials Requisition Slips	Time Tickets
Rodgers	$ 700	$ 900
Koss	1,800	700
Stevens	500	400
Linton	1,300	1,300
Rodgers	300	400
	4,600	3,700
General use	1,500	1,200
	$ 6,100	$ 4,900

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 $ 18,500. 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.

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