Phillips Corporation\'s fiscal year ends on November 30. The following accounts
ID: 2331227 • Letter: P
Question
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 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 $ 9,950 and direct labor costs of $ 16,600. Overhead was 2. applied at a rate that was 75% of direct labor cost. 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 $ 3,900 and direct labor $ 4,900, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,600. On December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,400 Manufacturing overhead was $ 945 underapplied in December. 3. 4. List the letters (a) through (m) and indicate the amount pertaining to each letter Raw Materials Inventory 7460 (a)Dec. 31 17,725 8,385 Dec. 1 Beginning balance Requisitions 18,650 31 Purchases Dec. 31 Ending balance Work in Process Inventory Dec. 1 Beginning balance (b) Dec. 31 Jobs completed 31 Direct materials 31 Direct labor 31 Overhead 9,100 Dec. 31 Ending balance Finished Goods Inventory Dec. 1 Beginning balance (g) Dec. 31 Cost of goods sold 31 Completed jobs Dec. 31 Ending balance 0) Factory Labor Dec. 31 Factory wages 12,125 Dec. 31 Wages assigned Manufacturing Overhead Dec. 31 Indirect materials 3,400 Dec. 31 Overhead applied 31 Indirect labor 31 Other overhead 1,345Explanation / Answer
Ans-List the letters (a) through (m) and indicate the amount pertaining to each letter:
Beginning balance (a)
(a) Begining balance=Ending balance +Requisitions-Purchases
8,385+18,650-17,725
Begining balance= 9,310
Work in Process Inventory
(b) Dec,1 Beginning Balance
Beginning balance=9,950+16,600+16,600*75%
=9,950+16,600+12,450
Beginning balance =39,000
(C) Direct materials
Direct materials= Requistions-Indirect material
= 18,650-3,400
Direct materials = 15,250
(d) Overhead
As overhead was applied at a rate that was 75%of direct labor cost
Overhead= Direct labor cost *75%
= 9,100*75/100
Overhead=6,825
(e)Ending balance
Ending balance=3,900+4,900+4,900*75%
= 3,900+4,900+3,675
Ending balance=12,475
(f) Jobs completed
Jobs completed= Beginning balance(b)+ Direct materials(c)+ Direct labor Overhead(d)-Ending balance (e)
=39,000+15,250+6,825-12,475
Jobs completed = 48,600
(g) Dec.1 begging balance=5,600 given
(h) Completed job= (f) above= 48,600
(j) Ending balance Dec.31= Opening balance(g)+Completed job(h)-cost of goods sold Dec.31
= 5,600+48,600-4,400
Ending balance= 49,800
(j) Cost of goods sold= 4,400 given
(k)Wages assigned= Equal to factory labor incurred 12,125
(l) Indirect labor = 12,125-9,100(given)
Indirect labor =3,025
(m) Overhead applied= Indirect materials+indirect labor+other overhead
=3,400+3,025+1,345+945
Overhead applied=8,715