Question

1.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 28,300 June 30 Requisitions (A) June 30 Purchases 113,800 Work in Process June 1 Balance (B) June 30 Completed jobs (F) June 30 Materials (C) June 30 Direct labor (D) June 30 Factory overhead applied (E) Finished Goods June 1 Balance 0 June 30 Cost of goods sold (G) June 30 Completed jobs (F) Wages Payable June 30 Wages incurred 125,000 Factory Overhead June 1 Balance 20,600 June 30 Factory overhead applied (E) June 30 Indirect labor (H) June 30 Indirect materials 15,100 June 30 Other overhead 113,700 In addition, the following information is available: a. Materials and direct labor were applied to six jobs in July: Job No. Style Quantity Direct Materials Direct Labor 201 T100 180 $16,680 $13,000 202 T200 400 31,000 25,000 203 T400 220 12,660 9,000 204 S200 300 32,700 30,000 205 T300 190 19,610 18,000 206 S100 150 8,400 5,000 Total 1,440 $121,050 $100,000 b. Factory overhead is applied to each job at a rate of 170% of direct labor cost. c. The June 1 Work in Process balance consisted of two jobs, as follows: Job No. Style Work in Process, June 1 201 T100 $5,100 202 T200 15,500 Total $20,600 d. Customer jobs completed and units sold in July were as follows: Job No. Style Completed in July Units Sold in July 201 T100 X 144 202 T200 X 320 203 T400 0 204 S200 X 252 205 T300 X 158 206 S100 0 1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter all amounts as positive numbers. Job No. Quantity June 1 Work in Process Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold No. 201 $ 5,100 $ 16,680 $ 13,000 $ $ $ $ No. 202 15,500 31,000 25,000 No. 203 12,660 9,000 No. 204 32,700 30,000 No. 205 19,610 18,000 No. 206 8,400 5,000 Total $20,600 121,050 100,000 $ $ $ 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. Use the minus sign to indicate any credit balances. Materials: $ Work in Process: $ Finished Goods: $ Factory Overhead: $ 2. 3. 4. Next

Answer 1

1	A=material requisitioned=Total material applied+Indirect material=121050+15100=$ 136150
	B=20600
	C=121050	(Total of materials applied)
	D=100000	(Total of labor applied)
	E=Factory overhead applied=170% of direct labor cost
	Factory overhead applied=100000*170%=$ 170000
	F=Cost of completed jobs
	All jobs are completed.Hence cost of jobs completed=total cost in work in process=B+C+D+E=20600+121050+100000+170000=$ 411650
	G=Cost of goods sold
	Find indivudual cost of jobs.Then compute cost per unit.Then cost of goods sold=Units sold*Cost per unit
	Job 201
	Beginning balance			5100
	Material			16680
	Labor			13000
	Factory overhead (13000*170%)			22100
	Total			56880
	Quantity			180
	Cost per unit			316
	Units sold=144
	cost of goods sold=144*316=$ 45504
	Job 202
	Beginning balance			15500
	Material			31000
	Labor			25000
	Factory overhead (25000*170%)			42500
	Total			114000
	Quantity			400
	Cost per unit			285
	Units sold=320
	cost of goods sold=320*285=$ 91200
	Job 203
	Beginning balance			0
	Material			12660
	Labor			9000
	Factory overhead (9000*170%)			15300
	Total			36960
	Quantity			220
	Cost per unit			168
	Units sold=0
	cost of goods sold=0*168=0
	Job 204
	Beginning balance			0
	Material			32700
	Labor			30000
	Factory overhead (9000*170%)			51000
	Total			113700
	Quantity			300
	Cost per unit			379
	Units sold=252
	cost of goods sold=252*379=$ 95508
	Job 205
	Beginning balance			0
	Material			19610
	Labor			18000
	Factory overhead (18000*170%)			30600
	Total			68210
	Quantity			190
	Cost per unit			359
	Units sold=158
	cost of goods sold=158*359=$ 56722
	Job 206
	Beginning balance			0
	Material			8400
	Labor			5000
	Factory overhead (5000*170%)			8500
	Total			21900
	Quantity			150
	Cost per unit			146
	Units sold=0
	cost of goods sold=0*146=0
	G=cost of goods sold=45504+91200+95508+56722=$ 288934
	H=Indirect labor=Wages incurred-Total labor applied=125000-100000=25000
2	Materials
	June 1 Balance		28300	June 30 Requisitions (A)			121050
	June 30 Purchases		113800	June 30 balance			21050
				(Balancing figure)
	Total		142100	Total			142100
	Work in Process
	June 1 Balance (B)		20600	June 30 Completed jobs (F)			411650
	June 30 Materials (C)		121050	June 30 Balance			0
	June 30 Direct labor (D)		100000	(Balancing figure)
	June 30 Factory overhead applied (E)		170000
			411650				411650
	Finished Goods
	June 1 Balance		0	June 30 Cost of goods sold (G)			288934
	June 30 Completed jobs (F)		411650	June 30 Balance
				(Balancing figure)			122716
			411650				411650
	Factory Overhead
	June 1 Balance		20600	June 30 Factory overhead applied €			170000
	June 30 Indirect labor (H)		25000	June 30 Balance
	June 30 Indirect materials		15100	(Balancing figure)			4400
	June 30 Other overhead		113700
			174400				174400