Question

P15.5A (LO 1, 2, 3, 4, 5), AN 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. Dec. 1 Raw Materials Inventory (a) Dec. 31 Requisitions 17,225 16,850 Beginning balance Purchases Ending balance 31 Dec. 31 7,975

Answer 1

List the letters (a) through (m) and indicate the amount pertaining to each letter.

Raw Materials Inventory
Dec. 1	Beginning balance	(a) $7600		Dec. 31	Requisitions	16,850
31	Purchases	17,225
Dec. 31	Ending balance	7,975

Work in Process Inventory
Dec. 1	Beginning balance	36000	(b)	Dec. 31	Jobs completed	52450	(f)
31	Direct materials	13950	(c)
31	Direct labor	8,400
31	Overhead	6300	(d)
Dec. 31	Ending balance	12200	(e)

Finished Goods Inventory
Dec. 1	Beginning balance	5000	(g)	Dec. 31	Cost of goods sold	53450	(i)
31	Completed jobs	52450	(h)
Dec. 31	Ending balance	4000	(j)

Factory Labor
Dec. 31	Factory wages	12,025		Dec. 31	Wages assigned	12025	(k)

Manufacturing Overhead
Dec. 31	Indirect materials	2,900		Dec. 31	Overhead applied	6300	(m)
31	Indirect labor	3625	(l)
31	Other overhead	1,245

working note:

a = 16850 + 7975 - 17225 = 7600

b = 9750 + 1500 + [0.75*15000] = 3600

c = 16850 - 2900 = 13950

d = 8400 * 0.75 = 6300

e = 3800 + 4800 + [480 *0.75 ] = 1200

f = 13950 + 8400 + 6300 + 36000 - 12200 = 52450

i = 52450 + 5000- 4000 =53450