Stellar
Inc. is a construction company specializing in custom patios. The patios are
constructed of concrete, brick, fiberglass, and lumber, depending upon
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 assigend 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)(i)(a) Journalize
the June transactions for purchase of raw materials.
(a)(i)(b) Journalize
the June transactions for factory labor costs.
(a)(i)(c) Journalize
the June transactions for manufacturing overhead costs incurred.
(a)(ii)(a) Journalize
the June transactions for the assignment of direct materials.
(a)(ii)(b) Journalize
the June transactions for the assignment of direct labor.
(a)(ii)(c) Journalize
the June transactions for the assignment of overhead to production.
(a)(iii)(a) Journalize
the June transactions for the completion of jobs.
(a)(iii)(b) Journalize
the June transactions for the 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 goods.
(d) Prepare a cost of goods manufactured schedule for June.
TUTORIAL PREVIEW
(a)(i)(a) Journalize
the June transactions for purchase of raw materials.
|
Raw materials Inventory
|
4,900
|
|
|
Accounts payable
|
4,900
|
|
Factory labor
|
4,400
|
|
|
Cash
|
4,400
|
File name: P2-3A Stellar Inc.xls File type: xls PRICE: $9
