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	29,300	June 30	Requisitions	(A)
June 30	Purchases	117,800

Work in Process
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
June 1	Balance	0	June 30	Cost of goods sold	(G)
June 30	Completed jobs	(F)

Wages Payable
			June 30	Wages incurred	122,500

Factory Overhead
June 1	Balance	22,700	June 30	Factory overhead applied	(E)
June 30	Indirect labor	(H)
June 30	Indirect materials	15,700
June 30	Other overhead	107,800

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	220			$21,460				$16,000
202		T200	420			33,200				26,000
203		T400	210			14,310				8,000
204		S200	270			32,670				27,000
205		T300	180			17,640				17,000
206		S100	120			6,000				4,000
Total			1,420			$125,280				$98,000

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	T100	$6,400
202	T200	16,300
Total		$22,700

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	176
202	T200	X	336
203	T400		0
204	S200	X	227
205	T300	X	149
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		$ 6,400		$ 21,460		$ 16,000		$		$		$				$
No. 202		16,300		33,200		26,000
No. 203				14,310		8,000
No. 204				32,670		27,000
No. 205				17,640		17,000
No. 206				6,000		4,000
Total		$22,700		$125,280		$98,000		$		$						$

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.

Materials	$
Work in process	$
Finished goods	$
Factory overhead	$

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