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, 2012, the general ledger for Stellar Inc. contains the following data.

 

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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.

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