FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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