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	26,400	June 30	Requisitions	(A)
June 30	Purchases	106,100

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	110,000

Factory Overhead
June 1	Balance	19,600	June 30	Factory overhead applied	(E)
June 30	Indirect labor	(H)
June 30	Indirect materials	14,100
June 30	Other overhead	97,700

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	370			27,630				24,000
203		T400	180			13,500				7,000
204		S200	240			26,460				23,000
205		T300	190			20,600				17,000
206		S100	140			7,960				4,000
		Total	1,300			$112,830				$88,000

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	14,500
Total		$19,600

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	296
203	T400		0
204	S200	X	202
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		14,500		27,630		24,000
No. 203				13,500		7,000
No. 204				26,460		23,000
No. 205				20,600		17,000
No. 206				7,960		4,000
Total		$19,600		112,830		88,000		$		$						$

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

Job No.	Quantity	1-Jun	Direct	Direct	Factory	Total Cost	Unit Cost	Units Sold	Cost of Goods Sold	Units unsold
		Work in	Materials	Labor	Overhead
		Process
No. 201		$5,100	$16,680	$13,000	$22,100.0	$56,880.0	$316.0	144	$45,504.0	36	$11,376.0
No. 202		14,500	27,630	24,000	$40,800.0	$106,930.0	$289.0	196	$56,644.0	174	$50,286.0
No. 203			13,500	7,000	$11,900.0	$32,400.0	$180.0	0	$0.0
No. 204			26,460	23,000	$39,100.0	$88,560.0	$369.0	202	$74,538.0	38	$14,022.0
No. 205			20,600	17,000	$28,900.0	$66,500.0	$350.0	158	$55,300.0	32	$11,200.0
No. 206			7,960	4,000	$6,800.0	$18,760.0	$134.0	0	$0.0
Total		$19,600	112,830	88,000	$149,600.0	$370,030.0			$519,630.0		$86,884.0
a. Materials Requisitions $	126,930
b. Work in Process Beginning Balance $	$19,600
c. Direct Materials $	126930
d. Direct Labor $	88,000
e. Factory overhead applied $	$149,600.0
f. Completed jobs $	$318,870.0
g. Cost of goods sold $	$519,630.0
h. Indirect labor $	22000
Balance
Materials:	5,570
Work in Process:	$51,160.0
Finished Goods:	$86,884.0
Factory Overhead:	$3,800.0