Question
Analyzing Manufacturing Cost Accounts Big Wave Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to
Analyzing Manufacturing Cost Accounts
Big Wave Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for July:
Materials | |||||
---|---|---|---|---|---|
July 1 | Balance | 35,900 | July 31 | Requisitions | (A) |
July 31 | Purchases | 144,300 |
Work in Process | |||||
---|---|---|---|---|---|
July 1 | Balance | (B) | July 31 | Completed jobs | (F) |
July 31 | Materials | (C) | |||
July 31 | Direct labor | (D) | |||
July 31 | Factory overhead applied | (E) |
Finished Goods | |||||
---|---|---|---|---|---|
July 1 | Balance | 0 | July 31 | Cost of goods sold | (G) |
July 31 | Completed jobs | (F) |
Wages Payable | |||||
---|---|---|---|---|---|
July 31 | Wages incurred | 118,800 | |||
Factory Overhead | |||||
---|---|---|---|---|---|
July 1 | Balance | 21,300 | July 31 | Factory overhead applied | (E) |
July 31 | Indirect labor | (H) | |||
July 31 | Indirect materials | 19,200 | |||
July 31 | Other overhead | 61,600 |
In addition, the following information is available:
Materials and direct labor were applied to six jobs in July:
Job No. | Style | Quantity | Direct Materials | Direct Labor | ||||||||
No. 21 | X-10 | 170 | $21,560 | $12,000 | ||||||||
No. 22 | X-20 | 420 | 42,040 | 27,000 | ||||||||
No. 23 | X-50 | 180 | 13,780 | 7,000 | ||||||||
No. 24 | T-20 | 280 | 42,560 | 28,000 | ||||||||
No. 25 | X-40 | 170 | 23,040 | 16,000 | ||||||||
No. 26 | T-10 | 150 | 10,550 | 5,000 | ||||||||
Total | 1,370 | $153,530 | $95,000 |
Factory overhead is applied to each job at a rate of 130% of direct labor cost.
The July 1 Work in Process balance consisted of two jobs, as follows:
Job No. | Style | Work in Process, July 1 | |||
Job 21 | X-10 | $4,900 | |||
Job 22 | X-20 | 16,400 | |||
Total | $21,300 |
Customer jobs completed and units sold in July were as follows:
Job No. | Style | Completed in July | Units Sold in July | |
No. 21 | X-10 | X | 136 | |
No. 22 | X-20 | X | 336 | |
No. 23 | X-50 | 0 | ||
No. 24 | T-20 | X | 235 | |
No. 25 | X-40 | X | 141 | |
No. 26 | T-10 | 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 | July 1 Work in Process | Direct Materials | Direct Labor | Factory Overhead | Total Cost | Unit Cost | Units Sold | Cost of Goods Sold | ||||||||
No. 21 | $ 4,900 | $ 21,560 | $ 12,000 | $ | $ | $ | $ | ||||||||||
No. 22 | 16,400 | 42,040 | 27,000 | ||||||||||||||
No. 23 | 13,780 | 7,000 | |||||||||||||||
No. 24 | 42,560 | 28,000 | |||||||||||||||
No. 25 | 23,040 | 16,000 | |||||||||||||||
No. 26 | 10,550 | 5,000 | |||||||||||||||
Total | $21,300 | 153,530 | 95,000 | $ | $ | $ |
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 July 31 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: | $ |
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