70.2K

Verified Solution

Link Copied!

Stellar 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, 2014, the general ledger for Stellar Inc. contains the following data.

Raw Materials Inventory		$4,500		Manufacturing Overhead Applied		$32,540
Work in Process Inventory		$5,160		Manufacturing Overhead Incurred		$31,630

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

Job Cost Sheets
		Customer Job
Cost Element		Gannon			Rosenthal			Linton
Direct materials		$590			$790			$840
Direct labor		350			570			480
Manufacturing overhead		385			627			528
		$1,325			$1,987			$1,848

During June, raw materials purchased on account were $4,290, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $740 and miscellaneous costs of $430 incurred on account. A summary of materials requisition slips and time tickets for June shows the following.

Customer Job		Materials Requisition Slips				Time Tickets
Gannon			$720			$480
Koss			2,490			710
Rosenthal			450			440
Linton			1,850			2,030
Gannon			310			440
			5,820			4,100
General use			1,200			1,950
			$7,020			$6,050

Overhead was charged to jobs at the same rate of $1.10 per dollar of direct labor cost. The patios for customers Gannon, Rosenthal, and Linton were completed during June and sold for a total of $19,130. Each customer paid in full

Answer & Explanation Solved by verified expert

See Answer