Couldn't find file 'jquery' rails 3.1 stable mountable engine

When I create a new engine in Rails 3.1 stable and then access the dummy
app or the engine I get an error say that the app can’t find jquery.

I’ve created the engine using
rails plugin new coffee --mountable

and created a basic controller in the engine and the dummy app. If I
remove the javascript include tag, everything works. But with the tag
there it just bails since it can’t fine jQuery.
The jquery-rails gem is installed. I have jquery as a dependency in my
gemspec file. I’ve even added an Gemfile to the dummy app just to try,
but it gives the same error.

accessing the dummy app

Sprockets::FileNotFound in Root#index
couldn’t find file ‘jquery’
(in
/Webapps/coffee/test/dummy/app/assets/javascripts/application.js:7)

Started GET “/” for 127.0.0.1 at 2011-09-01 20:31:01 +0200
Processing by RootController#index as HTML
Rendered root/index.html.erb within layouts/application (8.9ms)
Completed 500 Internal Server Error in 89ms

ActionView::Template::Error (couldn’t find file ‘jquery’
(in
/Webapps/coffee/test/dummy/app/assets/javascripts/application.js:7)):
3:
4: Dummy
5: <%= stylesheet_link_tag “application” %>
6: <%= javascript_include_tag “application” %>
7: <%= csrf_meta_tags %>
8:
9:
app/views/layouts/application.html.erb:6:in
`_app_views_layouts_application_html_erb___187280571548804820_2155822020’

accessing the engine

Sprockets::FileNotFound in Coffee/pages#index
couldn’t find file ‘jquery’
(in /Webapps/coffee/app/assets/javascripts/coffee/application.js:7)

Started GET “/coffee” for 127.0.0.1 at 2011-09-01 20:49:57 +0200
Processing by Coffee::PagesController#index as HTML
Rendered /Webapps/coffee/app/views/coffee/pages/index.html.erb within
layouts/coffee/application (0.3ms)
Completed 500 Internal Server Error in 41ms

ActionView::Template::Error (couldn’t find file ‘jquery’
(in
/Users/jorgen/Webapps/coffee/app/assets/javascripts/coffee/application.js:7)):
3:
4: Coffee
5: <%= stylesheet_link_tag “coffee/application” %>
6: <%= javascript_include_tag “coffee/application” %>
7: <%= csrf_meta_tags %>
8:
9: