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

Transaction Debit amount Transaction Credit amount

June $1$ Balance $27,400$ June $30$ Requisitions $($A$)$

June $30$ Purchases $110,000$

Work in Process

Transaction Debit amount Transaction Credit amount

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

Transaction Debit amount Transaction Credit amount

June $1$ Balance $0$ June $30$ Cost of goods sold $($G$)$

June $30$ Completed jobs $($F$)$

Wages Payable

Transaction Debit amount Transaction Credit amount

June $30$ Wages incurred $118,800$

Factory Overhead

Transaction Debit amount Transaction Credit amount

June $1$ Balance $20,300$ June $30$ Factory overhead applied $($E$)$

June $30$ Indirect labor $($H$)$

June $30$ Indirect materials $14,600$

June $30$ Other overhead $106,900$

In addition, the following information is available:

a$.$ Materials and direct labor were applied to six jobs in June:

Job No$.$ Style Quantity Direct Materials Direct Labor

$201$ T$100180$ $$16,860$ $$13,000$

$202$ T$20038029,02025,000$

$203$ T$40022013,9809,000$

$204$ S$20030035,10029,000$

$205$ T$30016017,42015,000$

$206$ S$1001104,6004,000$

Total $1,350$ $$116,980$ $$95,000$

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 $1$

$201$ T$100$ $$5,100$

$202$ T$20015,200$

Total $$20,300$

d$.$ Customer jobs completed and units sold in June were as follows:

Job No$.$ Style Completed

in June Units Sold

in June

$201$ T$100$ X $144$

$202$ T$200$ X $304$

$203$ T$4000$

$204$ S$200$ X $252$

$205$ T$300$ X $133$

$206$ S$1000$

$1.$ 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$.201$ fill in the blank $1$

$$5,100$ $$16,860$ $$13,000$ $fill in the blank $2$

$fill in the blank $3$

$fill in the blank $4$

fill in the blank $5$

$fill in the blank $6$

No$.202$ fill in the blank $7$

$15,20029,02025,000$ fill in the blank $8$

fill in the blank $9$

fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

No$.203$ fill in the blank $13$

$13,9809,000$ fill in the blank $14$

fill in the blank $15$

fill in the blank $16$

fill in the blank $17$

No$.204$ fill in the blank $18$

$35,10029,000$ fill in the blank $19$

fill in the blank $20$

fill in the blank $21$

fill in the blank $22$

fill in the blank $23$

No$.205$ fill in the blank $24$

$17,42015,000$ fill in the blank $25$

fill in the blank $26$

fill in the blank $27$

fill in the blank $28$

fill in the blank $29$

No$.206$ fill in the blank $30$

$4,6004,000$ fill in the blank $31$

fill in the blank $32$

fill in the blank $33$

fill in the blank $34$

Total fill in the blank $35$

$$20,300$ $$116,980$ $$95,000$ $fill in the blank $36$

$fill in the blank $37$

$fill in the blank $38$

Line Item Description Amount

A$.$ Materials Requisitions $fill in the blank $39$

B$.$ Work in Process Beginning Balance $fill in the blank $40$

C$.$ Direct Materials $fill in the blank $41$

D$.$ Direct Labor $fill in the blank $42$

E$.$ Factory overhead applied $fill in the blank $43$

F$.$ Completed jobs $fill in the blank $44$

G$.$ Cost of goods sold $fill in the blank $45$

H$.$ Indirect labor $fill in the blank $46$

$2.$ Determine the June $30$ balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.

Inventory Accounts Amount

Materials $fill in the blank $47$

Work in Process $fill in the blank $48$

Finished Goods $fill in the blank $49$

Factory Overhead $fill in the blank $50$