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Clarkson Inc. is a construction company specializi...

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Clarkson Inc. is a construction company specializing in custom patios. The patios are constructed on concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2011, the general ledger for Clarkson Inc. contains the following data. Raw Materials Inventory$4, 200 Manufacturing Overhead Applied $32,460 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 Elements Hokans Sonnenberg Kolsky 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 $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 Requisitions Slips Time Tickets Hokans $ 800 $ 450 Koss 2,000 800 Sonnenberg 500 360 Kolsky 1,300 1,600 Hokans 300 390 --------- ------- 4,900 3,600 1,500 1,200 --------- ------- General Use $ 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 Hokans, Sonnenberg, and Kolsky 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, factor 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.

 

Paper#6402 | Written in 18-Jul-2015

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