In: Accounting
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
June1. Balance. 32,900. |. June 30 Requisition. (A)
June 30 purchase 132,200. |.
Work in process
June1 balance. B. |. June 30 Complete jobs. (F)
June 30. Materials. C. |.
June 30 direct labor. D |
June 30 factory overhead. E. |
Finished Goods
June 1 balance 0 | June 30 Cost of goods sold ( G)
June 30 complete jobs (F) |
Wages payable
| June 30 wages incurred 121,300
Factory overhead
June 1 balance 23,500 | June 30 Factory Overhead applied (E)
June 30 indirect labor (H) |
June 30 indirect materials 17,600 |
June 30 other overhead 83,300 |
In addition, the following information is available:
A. Materials and direct labor were applied to six jobs in July:
Jobs Style Quantity Direct Materials Direct Labor
201 T100 220 $23,220 $16,000
202. T200 430. 39,220. 28,000
203. T400. 210. 14,860. 8,000
204. S200. 260. 36,760. 27,000
205. T300. 150. 18,850. 14,000
206. S100 120. 7,760. 4,000
Total. 1390. $140,670. $97,000
B. Factory overhead is applied to each job at a rate of 150% of Direct 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. $6,300
202. T200. 17,200
Total. $23,500
D. Customer jobs completed and units sold in july were as follows:
Job no. Style. Completed in July Unit sold in july
201. T100. X. 176
202. T200. X. 344
203. T400. 0
204. S200. X. 218
205. T300. X. 125
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 Direct Direct Factory Total Unit Cost Units sold Cost of
Process Materials Labor. Overhead Cost Goods sold
No.201 $6,300. $23,220. $16,000. $. $. $. $
No 202. 17,200. 39,220. 28,000.
No.203. 14,860. 8,000
No.204. 36,760. 27,000
No.205. 18,850. 14,000
No.206 7,760. 4,000
Total. $23,500. 140,670. 97,000
A. Material Requisitions $
B. Work in process beginning balance $
C. Direct materials $
D. Direct labor. $
E. Factory overhead applied $
F. Complete 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 $