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:

Transaction	Debit amount	Transaction	Credit amount
June 1 Balance	33,800	June 30 Requisitions	(A)
June 30 Purchases	135,800

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)

Transaction	Debit amount	Transaction	Credit amount
June 1 Balance	0	June 30 Cost of goods sold	(G)
June 30 Completed jobs	(F)

Transaction	Debit amount	Transaction	Credit amount
		June 30 Wages incurred	126,300

Transaction	Debit amount	Transaction	Credit amount
June 1 Balance	22,600	June 30 Factory overhead applied	(E)
June 30 Indirect labor	(H)
June 30 Indirect materials	18,100
June 30 Other overhead	88,900

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	T100	210	$21,940	$16,000
202	T200	420	37,380	27,000
203	T400	210	16,120	8,000
204	S200	290	41,580	30,000
205	T300	170	19,670	16,000
206	S100	130	7,810	4,000
Total		1,430	$144,500	$101,000

b. Factory overhead is applied to each job at a rate of 150% 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	$6,100
202	T200	16,500
Total		$22,600

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

Job No.	Style	Completed in June	Units Sold in June
201	T100	X	168
202	T200	X	336
203	T400		0
204	S200	X	244
205	T300	X	141
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	fill in the blank 1	$6,100	$21,940	$16,000	$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	16,500	37,380	27,000	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		16,120	8,000	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		41,580	30,000	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		19,670	16,000	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		7,810	4,000	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	$22,600	$144,500	$101,000	$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

Check My Work