Dav59
Sep 16, 2013, 05:49 PM
P2-3A 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 $4,200 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 Gannon Rosenthal 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 $700 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
Gannon $ 800 $ 450
Koss 2,000 800
Rosenthal 500 360
Linton 1,300 1,200
Gannon 300 390
4,900 3,200
General use 1,500 1,200
$6,400 $4,400
Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost.
The patios for customers Gannon, Rosenthal, and Linton were completed during June and
Sold for a total of $18,900. Each customer paid in full.
Instructions
(a) Journalize the June transactions: (I) for purchase of raw materials, factory labor
Costs incurred, and manufacturing overhead costs incurred; (ii) assignment of direct
Materials, labor, and overhead to production; and (iii) completion of jobs and sale of
Goods.
(b) Post the entries to Work in Process Inventory.
(c) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d) Prepare a cost of goods manufactured schedule for June.
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 $4,200 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 Gannon Rosenthal 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 $700 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
Gannon $ 800 $ 450
Koss 2,000 800
Rosenthal 500 360
Linton 1,300 1,200
Gannon 300 390
4,900 3,200
General use 1,500 1,200
$6,400 $4,400
Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost.
The patios for customers Gannon, Rosenthal, and Linton were completed during June and
Sold for a total of $18,900. Each customer paid in full.
Instructions
(a) Journalize the June transactions: (I) for purchase of raw materials, factory labor
Costs incurred, and manufacturing overhead costs incurred; (ii) assignment of direct
Materials, labor, and overhead to production; and (iii) completion of jobs and sale of
Goods.
(b) Post the entries to Work in Process Inventory.
(c) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d) Prepare a cost of goods manufactured schedule for June.