Analyzing Manufacturing Cost Accounts Fire Rock Company manufactures designer pa
ID: 2339724 • Letter: A
Question
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:
In addition, the following information is available:
a. Materials and direct labor were applied to six jobs in July:
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:
d. Customer jobs completed and units sold in July were as follows:
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.
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 June 1 Balance 26,400 June 30 Requisitions (A) June 30 Purchases 106,100Explanation / Answer
Job No. Quantity 1-Jun Direct Direct Factory Total Cost Unit Cost Units Sold Cost of Goods Sold Units unsold Work in Materials Labor Overhead Process No. 201 $5,100 $16,680 $13,000 $22,100.0 $56,880.0 $316.0 144 $45,504.0 36 $11,376.0 No. 202 14,500 27,630 24,000 $40,800.0 $106,930.0 $289.0 196 $56,644.0 174 $50,286.0 No. 203 13,500 7,000 $11,900.0 $32,400.0 $180.0 0 $0.0 No. 204 26,460 23,000 $39,100.0 $88,560.0 $369.0 202 $74,538.0 38 $14,022.0 No. 205 20,600 17,000 $28,900.0 $66,500.0 $350.0 158 $55,300.0 32 $11,200.0 No. 206 7,960 4,000 $6,800.0 $18,760.0 $134.0 0 $0.0 Total $19,600 112,830 88,000 $149,600.0 $370,030.0 $519,630.0 $86,884.0 a. Materials Requisitions $ 126,930 b. Work in Process Beginning Balance $ $19,600 c. Direct Materials $ 126930 d. Direct Labor $ 88,000 e. Factory overhead applied $ $149,600.0 f. Completed jobs $ $318,870.0 g. Cost of goods sold $ $519,630.0 h. Indirect labor $ 22000 Balance Materials: 5,570 Work in Process: $51,160.0 Finished Goods: $86,884.0 Factory Overhead: $3,800.0