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
$4,547
Manufacturing Overhead Applied
$32,579
Work in Process Inventory
$5,113
Manufacturing Overhead Incurred
$32,005
Subsidiary data for Work in Process Inventory on June 1 are as follows.
Job Cost Sheets
Customer Job
Cost Element
Fowler
Haines
Krantz
Direct materials
$ 542
$ 784
$ 949
Direct labor
360
510
420
Manufacturing overhead
432
612
504
$1,334
$1,906
$1,873
During June, raw materials purchased on account were $4,334, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $710 and miscellaneous costs of $472 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
$ 756
$ 450
Elgin
2,499
790
Haines
447
360
Krantz
1,922
1,600
Fowler
324
400
5,948
3,600
General use
1,819
1,700
$7,767
$5,300
Overhead was charged to jobs at the same rate of $1.2 per dollar of direct labor cost. The patios for customers Fowler, Haines, and Krantz were completed during June and sold for a total of $18,417. Each customer paid in full.
Correct.
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. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Account/Description
Debit
Credit
Raw materials inventory
4334
Accounts payable
4334
(Purchase of raw materials.)
Factory labor
5300
Cash
5300
(To record factory labor costs.)
Manufacturing overhead
1182
Acc. Depreciation-Equipment
710
Accounts payable
472
(To record manufacturing overhead costs.)
Work in process inventory
5948
Manufacturing overhead
1819
Raw materials inventory
7767
(To assign raw materials to production.)
Work in process inventory
3600
Manufacturing overhead
1700
Factory labor
5300
(To assign factory labor to production.)
Work in process inventory
4320
Manufacturing overhead
4320
(To assign manufacturing overhead to production.)
Finished goods inventory
14744
Work in process inventory
14744
(To record completion of jobs.)
Cash
18417
Sales
18417
(To record sale of jobs.)
Cost of goods sold
14744
Finished goods inventory
14744
(To record cost of jobs.)