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P2-5A Analyze manufacturing accounts and determine missing amounts Phillips Corporation's fiscal year ends on November 30. The following accounts are found in its job order
P2-5A Analyze manufacturing accounts and determine missing amounts | ||||||||||
Phillips Corporation's fiscal year ends on November 30. The following accounts are found in its job | ||||||||||
order cost accounting system for the first month of the new fiscal year. | ||||||||||
Raw Materials Inventory | ||||||||||
Dec. 1 | Beginning balance | (a) | Dec. 31 | Requisitions | $16,850 | |||||
31 | Purchases | 17,225 | ||||||||
Dec.31 | Ending balance | 7,975 | ||||||||
Work in Process Inventory | ||||||||||
Dec. 1 | Beginning balance | (b) | Dec. 31 | Jobs completed | (f) | |||||
31 | Direct materials | (c) | ||||||||
31 | Direct labor | 8,400 | ||||||||
31 | Overhead | (d) | ||||||||
Dec. 31 | Ending balance | (e) | ||||||||
Finished Goods Inventory | ||||||||||
Dec. 1 | Beginning balance | (g) | Dec. 31 | Cost of goods sold | (i) | |||||
Dec. 31 | Jobs completed | (h) | ||||||||
Dec. 31 | Ending balance | (j) | ||||||||
Factory Labor | ||||||||||
Dec. 31 | Factory wages | 12,025 | Dec. 31 | Wages assigned | (k) | |||||
Manufacturing Overhead | ||||||||||
Dec. 31 | Indirect materials | 2,900 | Dec. 31 | Overhead applied | (m) | |||||
31 | Indirect labor | (l) | ||||||||
31 | Other overhead | 1,245 | ||||||||
Other data: | ||||||||||
1. | On December 1, two jobs were in process: Job No. 154 and Job No.155. These jobs had combined direct | |||||||||
materials costs of $9,750 and direct labor costs of $15,000. Overhead was applied at a rate that was 75% | ||||||||||
of direct labor cost. | ||||||||||
2. | During December, Job Nos. 156, 157 and 158 were started. On December 31, Job No. 158 was unfinished. | |||||||||
This job had charges for direct materials $3,800 and direct labor $4,800 plus manufacturing overhead. All | ||||||||||
jobs, except for Job No. 158, were completed in December. | ||||||||||
3. | On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,000. On | |||||||||
December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,000. | ||||||||||
4. | Manufacturing overhead was $1,470 underapplied in December. | |||||||||
Instructions | ||||||||||
List the items (a) through (m) and indicate the amount pertaining to each letter. |
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Also answer additional question:
When you have completed P2-5A, consider the following additional question. | |||||||
1. | Assume that requisitions changed to $17,600. Show the impact of this | ||||||
change on the items listed. |
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