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 34,600 June 30 Requisitions (A) June 30 Purchases 139,000 Work in Process June 1 Balance (B) June 30 Completed jobs (F) June 30 Materials (C) June 30 June 30 Direct labor Factory overhead applied (E) Finished Goods June 1 Balance Cost of goods sold (G) o June 30 (F) June 30 Completed jobs Wages Payable June 30 Wages incurred 115,000 Factory Overhead June 1 Balance Factory overhead applied (E) 21,100 June 30 (H) June 30 Indirect labor June 30 Indirect materials 18,500 June 30 Other overhead 68,800 In addition, the following information is available: Direct Labor a. Materials and direct labor were applied to six jobs in June: Job No. Style Quantity Direct Materials 201 T100 180 $21,300 202 T200 400 39,500 203 T400 220 17,540 $14,000 25,000 8,000 204 S200 240 36,480 24,000 205 T300 190 25,890 17,000 206 S100 130 7,170 4,000 Total 1,360 $147,880 $92,000 b. Factory overhead is applied to each job at a rate of 140% 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 $5,400 202 T200 15,700 Total $21,100 d. Customer jobs completed and units sold in June were as follows: Job Completed in Units Sold in Style No. June June 201 T100 X 144 202 T200 X 320 203 T400 0 204 S200 202 205 T300 158 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. June 1 Work in Job No. Quantity Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold Process No. 201 180 $ 5,400 $ 21,300 $ 14,000 23,800 x No. 202 400 15,700 39,500 25,000 No. 203 220 17,540 8,000 No. 204 240 36,480 24,000 No. 205 190 25,890 17,000 No. 206 130 7,170 4,000 Total 1,360 $21,100 $147,880 $92,000 $ $ 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. 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
