alyzing 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:
|
June 1
|
Balance
|
82,500
|
June 30
|
Requisitions
|
|
30
|
Purchases
|
330,000
|
|
|
Materials
(A)
Work in Process
Finished Goods
|
June 1
|
Balance
|
0
|
June 30
|
Cost of goods sold
|
(G)
|
|
30
|
Completed jobs
|
(F)
|
|
|
|
Wages Payable
Factory Overhead
In addition, the following information is available:
a. Materials and direct labor were applied to six jobs in June:
|
Job no.
|
Style
|
Quantity
|
Direct Materials
|
Direct Labor
|
|
201
|
T100
|
550
|
$ 55,000
|
$ 41,250
|
|
202
|
T200
|
1,100
|
93,500
|
71,500
|
|
203
|
T400
|
550
|
38,500
|
22,000
|
|
204
|
S200
|
660
|
82,500
|
69,300
|
|
205
|
T300
|
480
|
60,000
|
48,000
|
|
206
|
S100
|
380
|
22,000
|
12,400
|
|
Total
|
3,720
|
$351,500
|
$264,450
|
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:
|
Job no.
|
Style
|
June 1
|
|
|
Job 201
|
T100
|
$16,500
|
|
|
Job 202
|
T200
|
44,000
|
|
|
Total
|
|
$60,500
|
|
d. Customer jobs completed and units sold in June were as follows:
|
Job no.
|
Style
|
Completedin June
|
Units Sold in June
|
|
201
|
T100
|
X
|
440
|
|
202
|
T200
|
X
|
880
|
|
203
|
T400
|
|
0
|
|
204
|
S200
|
X
|
570
|
|
205
|
T300
|
X
|
420
|
|
206
|
S100
|
|
0
|
Instructions
1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:
|
June 1
|
|
|
|
|
|
Cost of
|
|
Work in
|
Direct Direct
|
Factory
|
Total
|
Unit
|
Units
|
Goods
|
|
Job no. Quantity Process
|
MaterialsLabor
|
Overhead
|
Cost
|
Cost
|
Sold
|
Sold
|
2. Determine the June 30 balances for each of the inventory accounts and factory overhead.