Enos 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, 2010, the general ledger for Enos 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 |
|||
|
Fowler |
Haines |
Krantz |
|
|
Cost Element |
$ 600 |
$ 800 |
$ 900 |
|
Direct materials |
320 |
540 |
580 |
|
Direct labor |
400 |
675 |
725 |
|
Manufacturing overhead |
$1,320 |
$2,015 |
$2,205 |
During June, raw materials purchased on account were $3,900, 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 |
|
Fowler |
$ 800 |
$ 450 |
|
Elgin |
2,000 |
800 |
|
Haines |
500 |
360 |
|
Krantz |
1,300 |
1,600 |
|
Fowler |
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 Fowler, Haines, and Krantz 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 raw 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.