Accounting :Prepare financial statements for Stellar Inc.

Accounting :Prepare financial statements for Stellar Inc.

Subject: Business    / Accounting
Question
P2-3A 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, 2014, the general ledger for Stellar Inc. contains the following data.

Raw Materials Inventory $4,200 Manufacturing Overhead Applied $32,640Work 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 assigend 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)(i)(a)Journalize the June transactions for purchase of raw materials.(a)(i)(b)Journalize the June transactions for factory labor costs.(a)(i)(c)Journalize the June transactions for manufacturing overhead costs incurred.(a)(ii)(a)Journalize the June transactions for the assignment of direct materials.(a)(ii)(b)Journalize the June transactions for the assignment of direct labor.(a)(ii)(c)Journalize the June transactions for the assignment of overhead to production.(a)(iii)(a)Journalize the June transactions for the completion of jobs.(a)(iii)(b)Journalize the June transactions for the 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 goods.
(d) Prepare a cost of goods manufactured schedule for June.