Question

Materials
June 1	Balance	27,300	June 30	Requisitions	(A)
June 30	Purchases	109,600

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	120,000

Factory Overhead
June 1	Balance	21,700	June 30	Factory overhead applied	(E)
June 30	Indirect labor	(H)
June 30	Indirect materials	14,600
June 30	Other overhead	107,000

In addition, the following information is available:

a. Materials and direct labor were applied to six jobs in June:

Job No.		Style	Quantity		Direct Materials				Direct Labor
201		T100	210			$19,060				$16,000
202		T200	380			30,620				25,000
203		T400	220			13,540				9,000
204		S200	270			29,970				27,000
205		T300	170			16,980				16,000
206		S100	110			6,420				3,000
Total			1,360			$116,590				$96,000

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	$6,200
202	T200	15,500
Total		$21,700

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

Job No.	Style	Completed in June	Units Sold in June
201	T100	X	168
202	T200	X	304
203	T400		0
204	S200	X	227
205	T300	X	141
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		$ 6,200		$ 19,060		$ 16,000		$		$		$				$
No. 202		15,500		30,620		25,000
No. 203				13,540		9,000
No. 204				29,970		27,000
No. 205				16,980		16,000
No. 206				6,420		3,000
Total		$21,700		$116,590		$96,000		$		$						$

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=Total direct materials+Indirect materials=116590+14600=$ 131190
b.	Work in process beginning balance=Cost of Job 201 and 202 as on June 1=6200+15500=$ 21700
c.	Direct materials=Total direct materials cost=$ 116590
d.	Direct labor=$ 96000
e.	Factory overhead applied=Direct labor*170%=96000*170%=$ 163200
f.	Completed jobs=Cost of completed jobs
	Job No.				2021	202	204	205	Total
	Beginning balance				6200	15500	0	0
	Direct materials				19060	30620	29970	16980
	Direct labor			a	16000	25000	27000	16000
	Factory overhead applied			(a*170%)	27200	42500	45900	27200
	Total				68460	113620	102870	60180	345130
	Completed jobs=$ 345130
g.	Cost of goods sold
	Job No.				2021	202	204	205	Total
	Total cost			a	68460	113620	102870	60180
	Quantity produced			b	210	380	270	170
	Cost per unit			c=a/b	326	299	381	354
	Units sold			d	168	304	227	141
	Cost of goods sold			e=c*d	54768	90896	86487	49914	282065
	Cost of goods sold=$ 282065
h.	Indirect labor=Wages incurred-Direct labor=120000-96000=$ 24000

Job No.	Quantity	June 1 work in process	Direct materials	Direct labor	Factory overhead	Total cost	Unit cost	Units sold	Cost of goods sold
	a	b	c	d	e=d*170%	f=b+c+d+e	g=f/a	h	i=g*h
201	210	6200	19060	16000	27200	68460	326	152	49552
202	380	15500	30620	25000	42500	113620	299	304	90896
203	220		13540	9000	15300	37840	172	0	0
204	270		29970	27000	45900	102870	381	202	76962
205	170		16980	16000	27200	60180	354	125	44250
206	110		6420	3000	5100	14520	132	0	0
Total		21700	116590	96000	163200	397490			261660

2	June 30 balance
	Materials:
					$	$
	Beginning balance					27300
	Purchases					109600
						136900
	Less:
	Direct materials				116590
	Indirect materials				14600	131190
	June 30 balance					5710
	Work in process:
						$
	Beginning balance					21700
	Add:
	Direct materials					116590
	Direct labor					96000
	Factory overhead applied					163200
						397490
	Less: cost of completed job					345130
	June 30 balance					52360