Analyzing Manufacturing Cost Accounts Fire Rock Company manufactures designer pa
ID: 2408318 • 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 140% 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 35,800 June 30 Requisitions (A) June 30 Purchases 143,900Explanation / Answer
1.
a. Materials Requisitions : $ 172,140
b. Work in Process beginning balance : $ 21,700
c. Direct Materials : $ 153,040
d. Direct Labor : $ 99,000.
e. Factory Overhead Applied : $ 138,600
f. Completed Jobs : $ 353,910
g. Cost of Goods Sold : $ 289,434
h. Indirect Labor : $ 24,800
2.
Job No. Quantity June 1 Work in Process Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold 201 220 $ 6,500 $ 24,640 $ 17,000 $ 23,800 $ 71,940 $ 327 176 $ 57,552 202 390 15,200 36,730 25,000 35,000 111,930 287 312 89,544 203 220 0 17,780 9,000 12,600 39,380 179 0 0 204 300 0 43,800 29,000 40,600 113,400 378 252 95,256 205 160 0 20,640 15,000 21,000 56,640 354 133 47,082 206 150 0 9,450 4,000 5,600 19,050 127 0 0 Totals 1,440 $ 21,700 $ 153,040 $ 99,000 $ 138,600 $ 412,340 $ 289,434