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 $82,500$ June $30$ Requisitions $($A$)$

June $30$ Purchases $330,000$

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 $330,000$

Factory Overhead

Transaction Debit amount Transaction Credit amount

June $1$ Balance $33,000$ June $30$ Factory overhead applied $($E$)$

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

June $30$ Indirect materials $44,000$

June $30$ Other overhead $237,500$

In addition, the following information is available:

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

Job No$.$ Style Quantity Direct Materials Direct Labor

$201$ T$100550$ $$55,000$ $$41,250$

$202$ T$2001,10093,50071,500$

$203$ T$40055038,50022,000$

$204$ S$20066082,50069,300$

$205$ T$30048060,00048,000$

$206$ S$10038022,00012,400$

Total $3,720$ $$351,500$ $$264,450$

Factory overhead is applied to each job at a rate of $140\%$ of direct labor cost.

The June $1$ Work in Process balance consisted of two jobs, as follows:

Job No$.$ Style Work in Process,

June $1$

$201$ T$100$ $$16,500$

$202$ T$20044,000$

Total $$60,500$

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 $440$

$202$ T$200$ X $880$

$203$ T$4000$

$204$ S$200$ X $570$

$205$ T$300$ X $420$

$206$ S$1000$

Required:

$1.$ Determine the missing amounts associated with each letter by completing the table below. 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$.201550$ $fill in the blank $1$ $$55,000$ $$41,250$ $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$.2021,100$ fill in the blank $793,50071,500$ 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$.20355038,50022,000$ fill in the blank $13$ fill in the blank $14$ fill in the blank $15$ fill in the blank $16$

No$.20466082,50069,300$ fill in the blank $17$ fill in the blank $18$ fill in the blank $19$ fill in the blank $20$ fill in the blank $21$

No$.20548060,00048,000$ fill in the blank $22$ fill in the blank $23$ fill in the blank $24$ fill in the blank $25$ fill in the blank $26$

No$.20638022,00012,400$ fill in the blank $27$ fill in the blank $28$ fill in the blank $29$ fill in the blank $30$

Total $3,720$ $fill in the blank $31$ $$351,500$ $$264,450$ $fill in the blank $32$ $fill in the blank $33$ $fill in the blank $34$

Line Item Description Amount

A$.$ Materials Requisitions $fill in the blank $35$

B$.$ Work in Process Beginning Balance $fill in the blank $36$

C$.$ Direct Materials $fill in the blank $37$

D$.$ Direct Labor $fill in the blank $38$

E$.$ Factory overhead applied $fill in the blank $39$

F$.$ Completed jobs $fill in the blank $40$

G$.$ Cost of goods sold $fill in the blank $41$

H$.$ Indirect labor $fill in the blank $42$

$2.$ Determine the June $30$ balances for each of the inventory accounts and factory overhead.

Inventory Accounts Amount

Materials $fill in the blank $43$

Work in Process $fill in the blank $44$

Finished Goods $fill in the blank $45$

Factory Overhead $fill in the blank $46$

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