ralph Rover is a small company that manufactura special heavy equipment for use in under water oil fields The line workers are specially trained and earn $35/ hour. The company uses job order costing and applies manufachuning overhead on the basis of labor hours. At the beginners of the quarter, the following estimates 360,000 Eshmated manufuctusy overhead Cosis Estimated Direct Labor Hours 900 $ Ralph Rover Inc Balance Shet January 1 Assets Current assets Cash 93,000 accout, uyu 331,000 Inventones Raw material (film, costumes) * 50,000 work wiprocess (Tob411) 421,000 Firushed 25,000 Prepaid insurance TOTAL current assets Factory & Equipment 990,000 Less acumulated deprecianon 666,000 3 30,000 TOTAL assets a 1,023,000 Goods (Job 410) 150,000 18000 693.000 260,000 200,000 Liabilities and Stockholders' Equiry Accounts & wages Payable CAPITAL STOCK Retained earnings 56 3,00 763,000 Total Liabilities and stockholders' equity. 1,073,000 ou a ecoart , less The following transactims took place during the quarter (all purchases and services were acquired specified otherwise): a. Raw materials were purchased for use in production *200,000 bi Additional raw materials were requisitimad for use in Jobull, C. Raw materials were requisitioned for use in Job 42, 59 85.000 d. The factory incurred $63,000 in utility bills 100,000 e. Head quaters caurred * 7,000 in ultity bills f. The record for job 411 indicated an additional 675 labor hours 9. The record for job 412 indicated 300 labor hours h. Jolas 411 and 412 were completed during the ;. Jobs 410 and 412 were sold for 9750,000 on account. quarter j Advertising costs of * 136,000 were incurred and pard K. Exeative salaries wicurred were *110,000 l. The factory managers' salaries totaled $40,000. m. Indirect inateral requisitims to tated $70,000 n. * 150,000 of depreciation on the factory equipment o. Half ( 3 of inel months) 8f the prepaid insurance, for headquarters, expired this quarter. cash #815,000 in p. was collected from customer accounts: q $180,000 in cash was paid to supplges and * 210,000 mi cash was pard to employees, Prepare t-accounts, an ii come statement and a balance sheet Polph Rover is a Small that manufactures special heavy company equiposent for use in under water oil fields Theline workers specially rained and earn $351 hour. The company uses job order Costing and applies manufachuning overhead on the basis of labor hours. At the beginning of the quarter, the following estimates Estimated overhead Costs 360,000 manufacturing Estimated Direct labor Hours 900 93,000 331,000 Ralph Rover Inc Balance Shet January Assets Current assets Cash accounts receivable Inantones Raw material (film, costumes) $80,000 work process (Job411) 4921,000 Finished Goods (Job41) 150,000 Prepaid insurance Total current assets FACTORY & Equipment 990,000 Less acumlelated deprecianon 660,000 TOTAL assets 251,000 18,000 693,000 3 30,000 1,023,000 260,000 LiA Bilities and Stockholders' Equity Accounts & wages Payable CAPITAL STOCK 200,000 Retained earnings 563, OVO 763, 000 Tutal Liabilities and stocke holders' equitya 1,023,000
