Problem 16-3A
Case Inc. is a construction company specializing in custompatios. 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 | | $ 4,662 | | Manufacturing Overhead Applied | | $ 36,230 |
| Work in Process Inventory | | $ 6,149 | | Manufacturing Overhead Incurred | | $ 35,132 |
Subsidiary data for Work in Process Inventory on June 1 are asfollows.
Job Cost Sheets |
| | Customer Job |
Cost Element | | Rodgers | | Stevens | | Linton |
| Direct materials | | $ 666 | | $ 888 | | $ 999 |
| Direct labor | | 355 | | 599 | | 644 |
| Manufacturing overhead | | 444 | | 749 | | 805 |
| | $ 1,465 | | $ 2,236 | | $ 2,448 |
During June, raw materials purchased on account were $ 5,439 ,and all wages were paid. Additional overhead costs consisted ofdepreciation on equipment $ 999 and miscellaneous costs of $ 444incurred on account.
A summary of materials requisition slips and time tickets for Juneshows the following.
Customer Job | | Materials Requisition Slips | | Time Tickets |
| Rodgers | | $ 888 | | $ 944 |
| Koss | | 2,220 | | 888 |
| Stevens | | 555 | | 400 |
| Linton | | 1,443 | | 1,332 |
| Rodgers | | 333 | | 433 |
| | 5,439 | | 3,997 |
| General use | | 1,665 | | 1,332 |
| | $ 7,104 | | $ 5,329 |
Overhead was charged to jobs at the same rate of $ 1.25 per dollarof direct labor cost. The patios for customers Rodgers, Stevens,and Linton were completed during June and sold for a total of $20,979 . Each customer paid in full.
Journalize the June transactions: (1) for purchase of rawmaterials, factory labor costs incurred, and manufacturing overheadcosts incurred; (2) assignment of direct materials, labor, andoverhead to production; and (3) completion of jobs and sale ofgoods. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. Roundanswers to 0 decimal places, e.g. 2,500.)
