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	35,800	June 30	Requisitions	(A)
June 30	Purchases	143,900

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	123,800

Factory Overhead
June 1	Balance	21,700	June 30	Factory overhead applied	(E)
June 30	Indirect labor	(H)
June 30	Indirect materials	19,100
June 30	Other overhead	75,900

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	220			$24,640				$17,000
202		T200	390			36,730				25,000
203		T400	220			17,780				9,000
204		S200	300			43,800				29,000
205		T300	160			20,640				15,000
206		S100	150			9,450				4,000
		Total	1,440			$153,040				$99,000

b. Factory overhead is applied to each job at a rate of 140% 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	$6,500
202	T200	15,200
Total		$21,700

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	176
202	T200	X	312
203	T400		0
204	S200	X	252
205	T300	X	133
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		$ 6,500		$ 24,640		$ 17,000		$		$		$				$
No. 202		15,200		36,730		25,000
No. 203				17,780		9,000
No. 204				43,800		29,000
No. 205				20,640		15,000
No. 206				9,450		4,000
Total		$21,700		153,040		99,000		$		$						$

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:	$

Answer 1

1.

a. Materials Requisitions : $ 172,140

b. Work in Process beginning balance : $ 21,700

c. Direct Materials : $ 153,040

d. Direct Labor : $ 99,000.

e. Factory Overhead Applied : $ 138,600

f. Completed Jobs : $ 353,910

g. Cost of Goods Sold : $ 289,434

h. Indirect Labor : $ 24,800

Job No.	Quantity	June 1 Work in Process	Direct Materials	Direct Labor	Factory Overhead	Total Cost	Unit Cost	Units Sold	Cost of Goods Sold
201	220	$ 6,500	$ 24,640	$ 17,000	$ 23,800	$ 71,940	$ 327	176	$ 57,552
202	390	15,200	36,730	25,000	35,000	111,930	287	312	89,544
203	220	0	17,780	9,000	12,600	39,380	179	0	0
204	300	0	43,800	29,000	40,600	113,400	378	252	95,256
205	160	0	20,640	15,000	21,000	56,640	354	133	47,082
206	150	0	9,450	4,000	5,600	19,050	127	0	0
Totals	1,440	$ 21,700	$ 153,040	$ 99,000	$ 138,600	$ 412,340			$ 289,434

2.

Materials	$ 7,560
Work in Process	58,430
Finished Goods	64,476
Factory Overhead	2,900