Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fi berglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.

General ledger
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	Rodgers	Stevens	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$900 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
Rodgers	$ 800	$850
Koss	2,000	800
Stevens	500	360
Linton	1,300	1,200
Rodgers	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 Rodgers, Stevens, and Linton were completed during June and sold for a total of $18,900. Each customer paid in full.

Instructions (b) Post the entries to Work in Process Inventory.

C. Erickson and Sons, Inc., is a Philadelphia-based construction company. Visit its home page at the following address:

www.cerickson.com

a. Identify three projects and/or services provided by the company.

General-purpose financial statements are the product of

a. financial accounting.
b. managerial accounting.
c. both financial and managerial accounting.
d. neither financial nor managerial accounting.

Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fi berglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.

Subsidiary data for Work in Process Inventory on June 1 are as follows.

During June, raw materials purchased on account were $4,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment$900 and miscellaneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following.

Overhead was charged to jobs at the same rate of$1.25 per dollar of direct labor cost. The patios for customers Rodgers, Stevens, 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: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods.

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429$2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following.

$$\begin{array}{cllc} \textbf{\underline{Job Number}}&\textbf{\underline{Material requisition slips}}&\textbf{\underline{Labor time tickets}}\\ 429&\$2,500~~~&\$1,900\\ 430&3,500~~~&3,000\\ 431&\underline{4,400}\hspace{50pt}\$10,400&\underline{7,600}\hspace{50pt}\$12,500\\ \text{General use}&\hspace{94pt}\underline{800}&\hspace{85pt}\underline{1,200}\\ &\hspace{75pt}\underline{\underline{\$11,200}}&\hspace{85pt}\underline{\underline{1,200}}\\ \end{array}$$

Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.

Instructions (a) Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429$2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following.

$$\begin{array}{cllc} \textbf{\underline{Job Number}}&\textbf{\underline{Material requisition slips}}&\textbf{\underline{Labor time tickets}}\\ 429&\$2,500~~~&\$1,900\\ 430&3,500~~~&3,000\\ 431&\underline{4,400}\hspace{50pt}\$10,400&\underline{7,600}\hspace{50pt}\$12,500\\ \text{General use}&\hspace{94pt}\underline{800}&\hspace{85pt}\underline{1,200}\\ &\hspace{75pt}\underline{\underline{\$11,200}}&\hspace{85pt}\underline{\underline{1,200}}\\ \end{array}$$

Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.

Instructions (b) Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Use a T-account.)

Wildhorse Company had the following adjusted trial balance. Wildhorse Company

(a) Prepare closing entries at June 30, 2022.

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor$12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of$90,000 and was part of fi nished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for$122,000 and $158,000, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of$90,000 on account.
2. Incurred factory labor costs of $70,000. Of this amount$16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor$20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account$16,000.
4. Assigned direct materials and direct labor to jobs as follows.

Instructions (g) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?

Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2017, the following estimates were made for the year.

During January, the job cost sheets showed the following costs and production data

Instructions (c) Compute the under- or overapplied overhead for each department at January 31.

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor$12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of$90,000 and was part of fi nished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for$122,000 and $158,000, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of$90,000 on account.
2. Incurred factory labor costs of $70,000. Of this amount$16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor$20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account$16,000.
4. Assigned direct materials and direct labor to jobs as follows.

Instructions (d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor$12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of$90,000 and was part of fi nished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for$122,000 and $158,000, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of$90,000 on account.
2. Incurred factory labor costs of $70,000. Of this amount$16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor$20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account$16,000.
4. Assigned direct materials and direct labor to jobs as follows.

Instructions (c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor$12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of$90,000 and was part of fi nished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for$122,000 and $158,000, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of$90,000 on account.
2. Incurred factory labor costs of $70,000. Of this amount$16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor$20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account$16,000.
4. Assigned direct materials and direct labor to jobs as follows.

Instructions (e) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor$12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of$90,000 and was part of fi nished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for$122,000 and $158,000, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of$90,000 on account.
2. Incurred factory labor costs of $70,000. Of this amount$16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor$20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account$16,000.
4. Assigned direct materials and direct labor to jobs as follows.

Instructions (b) Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50.

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor$12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of$90,000 and was part of fi nished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for$122,000 and $158,000, respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of$90,000 on account.
2. Incurred factory labor costs of $70,000. Of this amount$16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000, indirect labor$20,000, depreciation expense on equipment $12,000, and various other manufacturing overhead costs on account$16,000.
4. Assigned direct materials and direct labor to jobs as follows.

Instructions (a) Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs of$840,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year