Chapter 2, Problem 2.3AP

Prepare entries in a job order cost system and cost of goods manufactured schedule.

(LO 1, 2, 3, 4, 5), AP

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.

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

During June, raw materials purchased on account were $4,900, and all wages were paid Additional overhead costs consisted of depreciation on equipment $900 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	$ 800	$ 850
Koss	2,000	800
Stevens	500	360
Linton	1,300	1,200
Rodgers	300	390
	4,900	3,600
General use	1,500	1,200
	$6,400	$4,800

Overhead was changed 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 $18,900. Each customer paid in full.

Instructions

(a) 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.

(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.

(d) Cost of goods manufactured $14,740