Problem 203A Case Inc is a construction company specializing

Problem 20-3A

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.

Problem 20-3A 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 Work In Process Inventory Subsidiary data for Work in Process Inventory on June 1 are as follows $4,200 $5,540 Manufacturing Overhead Applied Manufacturing Overhead Incurred $32,640 $31,650 Job Cost Sheets Customer Job Stevens Cost Element Direct materlals Direct labor Manufacturing overhead Rodgers Linton $600 320 400 $1,320 $800 540 675 $2,015 $900 580 725 $2,205 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.

Solution

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-a. Raw Materials Inventory                     Dr.          4,900 To Accounts Payable          4,900 (To record purchase of raw materials) 1-b. Factory Labor                                            Dr.          4,800 To Cash          4,800 (To record factory labor costs paid) 1-c. Manufacturing Overhead                     Dr.          1,300 To Accumulated Dep. - Equipment             900 To Accounts Payable             400 (To record the manufacturing overhead incurred) 2-a. WIP Inventory                                           Dr.          4,900 Manufacturing Overhead                     Dr.          1,500 To Raw Materials Inventory          6,400 (To record assignment of direct materials) 2-b. WIP Inventory                                           Dr.          3,600 Manufacturing Overhead                     Dr.          1,200 To Factory Labor          4,800 (To record assignment of factory labor) 2-c. WIP Inventory                                           Dr.          4,500 To Manufacturing Overhead          4,500 (To record assignment of Manufacturing Overhead) Manufacturing Overhead Applied = $1.25 X $3,600 Manufacturing Overhead Applied = $4,500 3-a. Finished Goods Inventory                    Dr.       14,740 To WIP Inventory       14,740 (To record completion of jobs) 3-b. Cash                                                                Dr.       18,900 To Sales Revenue       18,900 (To record sale of goods) 3-c. Cost of Goods Sold                                   Dr.       14,740 To Finished Goods Inventory       14,740 (To record cost of goods sold) Job Sheet Rodgers Stevens Linton Koss Total Beginning Balance               1,320              2,015               2,205                     -                5,540 Direct Materials               1,100                  500               1,300              2,000              4,900 Direct Labor               1,240                  360               1,200                  800              3,600 Manufacturing Ovrehead Applied               1,550                  450               1,500              1,000              4,500 Total               5,210              3,325               6,205              3,800           18,540 Jobs Completed Completed Completed Completed WIP Answer 2. WIP Inventory Beg. Bal.          5,540          14,740 Finished Goods Inventory Direct Materials          4,900 Direct Labor          3,600 Manufacturing Overhead          4,500 End. Bal.          3,800 Answer 3. WIP Inventory - Ending                                           3,800 Koss: Direct Materials            2,000 Direct Labor                800 Manufacturing Overhead            1,000                                           3,800 Answer 4. Case Inc. Cost of Goods Manufactured Schedule For the Month Ended June 30, 2017 WIP Inventory - June 1, 2017              5,540 Direct Materials Used               4,900 Direct Labor               3,600 Manufacturing Overhead               4,500 Total Manufacturing Costs            13,000 Total cost of WIP            18,540 Less: WIP Inventory - June 30, 2017            (3,800) Cost of Goods Manufactured            14,740