Question

Analyzing Manufacturing Cost Accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

Materials
June 1	Balance	82,500	June 30	Requisitions	(a)
30	Purchases	330,000

Work in Process
June 1	Balance	(b)	June 30	Completed jobs	(f)
30	Materials	(c)
30	Direct labor	(d)
30	Factory overhead applied	(e)

Finished Goods
June 1	Balance	0	June 30	Cost of goods sold	(g)
30	Completed jobs	(f)

Wages Payable
			June 30	Wages incurred	330,000

Factory Overhead
June 1	Balance	33,000	June 30	Factory overhead applied	(e)
30	Indirect labor	(h)
30	Indirect materials	44,000
30	Other overhead	237,500

In addition, the following information is available:

1. Materials and direct labor were applied to the following jobs in June:

   Job No.		Style	Quantity		Direct Materials				Direct Labor
   201		T100	550			$55,000				$41,250
   202		T200	1,100			93,500				71,500
   203		T400	550			38,500				22,000
   204		S200	660			82,500				69,300
   205		T300	480			60,000				48,000
   206		S100	380			22,000				12,400
   		Total	3,720			$351,500				$264,450

2. Factory overhead is applied to each job at a rate of 140% of direct labor cost.
3. The June 1 Work in Process balance consisted of two jobs, as follows:

   Job No.	Style	Work in Process, June 1
   201	T100	$16,500
   202	T200	44,000
   Total		$60,500

4. Customer jobs completed and units sold in June were as follows:

   Job No.	Style	Completed in June	Units Sold in June
   201	T100	X	440
   202	T200	X	880
   203	T400		0
   204	S200	X	570
   205	T300	X	420
   206	S100		0

Required:

1. Determine the missing amounts associated with each letter by completing the table below. If an answer is zero, enter in "0". Enter all amounts as positive numbers.

Job No.	Quan- tity		June 1 Work in Process		Direct Materials		Direct Labor		Factory Overhead		Total Cost		Unit Cost		Units Sold		Cost of Goods Sold
No. 201	550		$		$55,000		$41,250		$		$		$				$
No. 202	1,100				93,500		71,500
No. 203	550				38,500		22,000
No. 204	660				82,500		69,300
No. 205	480				60,000		48,000
No. 206	380				22,000		12,400
Total	3,720		$		$351,500		$264,450		$		$						$

A. Materials Requisitions $

B. Work in Process Beginning Balance $

C. Direct Materials $

D. Direct Labor $

E. Factory overhead applied $

F. Completed jobs $

G. Cost of goods sold $

H. Indirect labor $

2. Determine the June 30 balances for each of the inventory accounts and factory overhead.

Materials	$
Work in Process	$
Finished Goods	$
Factory Overhead	$

Answer 1

Job No.	Quantity	June 1 Work in Process	Direct Material	Direct labor	Factory Overhead	Total	Cost per unit	Units sold	Cost of Goods Sold	Finished Inventory
No. 201	550	$          16,500	$         55,000	$          41,250	$         57,750	$ 1,70,500	$       310	440	$       1,36,400	$        34,100
No. 202	1100	$          44,000	$         93,500	$          71,500	$      1,00,100	$ 3,09,100	$       281	880	$       2,47,280	$        61,820
No. 203	550		$         38,500	$          22,000	$         30,800	$      91,300
No. 204	660		$         82,500	$          69,300	$         97,020	$ 2,48,820	$       377	570	$       2,14,890	$        33,930
No. 205	480		$         60,000	$          48,000	$         67,200	$ 1,75,200	$       365	420	$       1,53,300	$        21,900
No. 206	380		$         22,000	$          12,400	$         17,360	$      51,760
Totals	3720	$         60,500	$     3,51,500	$      2,64,450	$     3,70,230	$    418,100			$      7,51,870	$     1,51,750

A. Materials Requisitions = $351500+44000 = $395500

B. Work in Process Beginning Balance = $60500

C. Direct Materials = $351500

D. Direct Labor = $264450

E. Factory overhead applied = $370230

F. Completed jobs = $903620

G. Cost of goods sold = $751870

H. Indirect labor = $330000-264450 = $65550

June 30 Balances
Materials = $82500+330000-395500 = $17000
Work in process = $60500+351500+264450+370230-903620 = $143060
Finished goods = $0+903620-751870 = $151750
Factory Overhead = $33000+65550+44000+237500-370230 = $9820