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 28,300 June 30 Requisitions (A)

June 30 Purchases 113,800

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 125,000

Factory Overhead

June 1 Balance 20,600 June 30 Factory overhead applied (E)

June 30 Indirect labor (H)

June 30 Indirect materials 15,100

June 30 Other overhead 113,700

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 400 31,000 25,000

203 T400 220 12,660 9,000

204 S200 300 32,700 30,000

205 T300 190 19,610 18,000

206 S100 150 8,400 5,000

Total 1,440 $121,050 $100,000

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 15,500

Total $20,600

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 320

203 T400 0

204 S200 X 252

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

15,500 31,000 25,000

No. 203

12,660 9,000

No. 204

32,700 30,000

No. 205

19,610 18,000

No. 206

8,400 5,000

Total

$20,600 121,050 100,000 $

$

$

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: $