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:

TransactionDebit amountTransactionCredit amountJune 1 Balance35,500June 30 Requisitions(A)June 30 Purchases142,700

TransactionDebit amountTransactionCredit amountJune 1 Balance(B)June 30 Completed jobs(F)June 30 Materials(C)June 30 Direct labor(D)June 30 Factory overhead applied(E)

TransactionDebit amountTransactionCredit amountJune 1 Balance0June 30 Cost of goods sold(G)June 30 Completed jobs(F)

TransactionDebit amountTransactionCredit amountJune 30 Wages incurred123,800

TransactionDebit amountTransactionCredit amountJune 1 Balance22,300June 30 Factory overhead applied(E)June 30 Indirect labor(H)June 30 Indirect materials19,000June 30 Other overhead75,400

In addition, the following information is available:

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

Job No.StyleQuantityDirect MaterialsDirect Labor201T100190$21,420$14,000202T20042042,62027,000203T40022015,3609,000204S20029042,55030,000205T30016020,96015,000206S1001408,8804,000Total1,420$151,790$99,000

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.StyleWork in Process, June 1201T100$5,400202T20016,900Total$22,300

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

Job No.StyleCompleted in JuneUnits Sold in June201T100X152202T200X336203T4000204S200X244205T300X133206S1000

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.QuantityJune 1 Work in ProcessDirect MaterialsDirect LaborFactory OverheadTotal CostUnit CostUnits SoldCost of Goods SoldNo. 201$5,400$21,420$14,000No. 20216,90042,62027,000No. 20315,3609,000No. 20442,55030,000No. 20520,96015,000No. 206fill in the blank 308,8804,000Totalfill in the blank 35$22,300$151,790$99,000

Line Item DescriptionAmountA. Materials RequisitionsB. Work in Process Beginning BalanceC. Direct MaterialsD. Direct LaborE. Factory overhead appliedF. Completed jobsG. Cost of goods soldH. 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.

Inventory AccountsAmountMaterialsWork in ProcessFinished GoodsFactory Overhead