P15-3A Case Inc. is a construction company specializing in custom patios.


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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        $4,200             Manufacturing Overhead Applied      $32,640

Work in Process Inventory      $5,540             Manufacturing Overhead Incurred     $31,650

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                                                          $600                $800                $900

Direct labor                                                                 320                  540                  580

Manufacturing overhead                                            400                  675                  725

                                                                                   $1,320             $2,015             $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.

           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 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 $18,900. Each customer paid in full.


Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead cost incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods.
Post the entries to Work in Process Inventory.
Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
Prepare a cost of goods manufactured schedule for June.


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