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 $5,082 Manufacturing Overhead Applied $39,494 Work in Process Inventory $6,703 Manufacturing Overhead Incurred $38,297 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 $726 $968 $1,089 Direct labor 387 653 702 Manufacturing overhead 484 817 877 $1,597 $2,438 $2,668 During June, raw materials purchased on account were $5,929, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $1,089 and miscellaneous costs of $484 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 $968 $1,029 Koss 2,420 968 Stevens 605 436 Linton 1,573 1,452 Rodgers 363 472 5,929 4,357 General use 1,815 1,452 $7,744 $5,809 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 $22,869. 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. Round answers to 0 decimal places, e.g. 2,500.)

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, 2017, the general ledger for Case Inc. contains the following data.

Raw Materials Inventory		$5,082		Manufacturing Overhead Applied		$39,494
Work in Process Inventory		$6,703		Manufacturing Overhead Incurred		$38,297

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	$726	$968	$1,089
Direct labor	387	653	702
Manufacturing overhead	484	817	877
	$1,597	$2,438	$2,668

During June, raw materials purchased on account were $5,929, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $1,089 and miscellaneous costs of $484 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	$968	$1,029
Koss	2,420	968
Stevens	605	436
Linton	1,573	1,452
Rodgers	363	472
	5,929	4,357
General use	1,815	1,452
	$7,744	$5,809

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 $22,869. 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. Round answers to 0 decimal places, e.g. 2,500.)

No.	Account Titles and Explanation	Debit	Credit
(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)

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