Question

Phillips Corporation’s fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year.

Other data:

1.

On December 1, two jobs were in process: Job No. 154 and Job No. 155. These jobs had combined direct materials costs of $ 9,850 and direct labor costs of $ 16,100. Overhead was applied at a rate that was 75% of direct labor cost.

2.

During December, Job Nos. 156, 157, and 158 were started. On December 31, Job No. 158 was unfinished. This job had charges for direct materials $ 4,000 and direct labor $ 5,100, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December.

3.

On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $ 5,100. On December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $ 4,100.

4.

Manufacturing overhead was $ 745 underapplied in December.

List the letters (a) through (m) and indicate the amount pertaining to each letter.

Raw Materials Inventory
Dec. 1	Beginning balance		(a)	Dec. 31	Requisitions	18,350
31	Purchases	19,325
Dec. 31	Ending balance	8,205

Work in Process Inventory
Dec. 1	Beginning balance		(b)	Dec. 31	Jobs completed		(f)
31	Direct materials		(c)
31	Direct labor	9,100
31	Overhead		(d)
Dec. 31	Ending balance		(e)

Finished Goods Inventory
Dec. 1	Beginning balance		(g)	Dec. 31	Cost of goods sold		(i)
31	Completed jobs		(h)
Dec. 31	Ending balance		(j)

Factory Labor
Dec. 31	Factory wages	12,125		Dec. 31	Wages assigned		(k)

Manufacturing Overhead
Dec. 31	Indirect materials	3,200		Dec. 31	Overhead applied		(m)
31	Indirect labor		(l)
31	Other overhead	1,345

Answer 1

Raw Materials
Dec-01	Beginning balance	$   7,230	(a)	Dec-31	Requisition	$ 18,350
31	Purchases	$ 19,325
Dec-31	Ending balance	$   8,205
Work - in - Process Inventory
Dec-01	Beginning balance	$ 38,025	(b)	Dec-31	Jobs completed	$ 56,175	(f)
31	Direct material	$ 15,150	(c)
31	Direct labor	$   9,100
31	Overhead	$   6,825	(d)
Dec-31	Ending balance	$ 12,925	(e)
Finished Goods
Dec-01	Beginning balance	$   5,100	(g)	Dec-31	Cost of goods sold	$ 57,175	(i)
31	Completed jobs	$ 56,175	(h)
Dec-31	Ending balance	$   4,100	(j)
Factory Labor
Dec-31	Factory wages	$ 12,125		Dec-31	Wages assigned	$ 12,125	(k)
Manufacturing Overheads
Dec-31	Indirect materials	$   3,200		Dec-31	Overhead applied	$   6,825	(m)
31	Indirect labor	$   4,970	(l)
31	Other overheads	$   1,345