Question

Analyzing Manufacturing Cost Accounts Fire Rock Company manufactures designer paddie boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June: Materials June 1 Balance 20,800Dune 30 115,600 Requisitions (A) Purchases June 30 Work in Process June 1 Balance (B)Dune 30 Completed jobs (F) June 30 (C) Materials June 30 Direct labor (D) June 30 Factory overhead applied (E) Finished Goods Balance June 1 oune 30 Cost of goods sold (G) Completed jobs June 30 (F) Wages Payable June 30 Wages incurred 120.000 Factory Overhead 21,400une 30 June 1 Balance Factory overhead applied (1) June 30 Indirect labor 15,400 June 30 Indrect materials 100.500 June 30 Other overtead

Answer 1

1.

Job no.	Quantity	June 1 work in process	Direct materials	Direct labor	Factory overhead (Direct labor*170%)	Total cost	Unit cost	Units sold	Cost of goods sold
201	230	$6,600	$21,330	$17,000	$28,900	$73,830	$321	184	$59,064
202	370	14,800	29,180	24,000	40,800	108,780	294	296	87,024
203	230		14,110	9,000	15,300	38,410
204	290		32,280	28,000	47,600	107,880	372	244	90,768
205	170		19,000	15,000	25,500	59,500	350	141	49,350
206	100		7,100	3,000	5,100	15,200
Total		$21,400	$123,000	$96,000	$163,200	$403,600			$286,206

a. Material requisition = $123,000+15,400 = $138,400

b. Work in process, beginning balance = $21,400

c. Direct materials = $123,000

d. Direct labor = $96,000

e. Factory overhead applied = $163,200

f. Completed Jobs = $73,830+108,780+107,880+59,500 = $349,990

g. Cost of goods sold = $286,206

h. Indirect labor = $120,000 - 96,000 = $24,000

2.

Materials = $28,800+115,600-138,400 = $6,000

Work in process = $38,410 + $15,200 = $53,610

Finished goods = $349,990 - 286,206 = $63,784

Factory overhead = $167,300 (21,400+24,000+15,400+106,500) - $163,200 = $4,100