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: Materials June 1 Balance 28,600 June 30 Requisitions (A) June 30 Purchases 115,000       Work in Process June 1 Balance (B) June 30 Completed jobs (F) June 30 Materials (C)       June 30 Direct labor (D)       June 30 Factory overhead applied (E)       Finished Goods June 1 Balance 0 June 30 Cost of goods sold (G) June 30 Completed jobs (F)       Wages Payable       June 30 Wages incurred 122,500             Factory Overhead June 1 Balance 22,500 June 30 Factory overhead applied (E) June 30 Indirect labor (H)       June 30 Indirect materials 15,300       June 30 Other overhead 108,500       In addition, the following information is available: a. Materials and direct labor were applied to six jobs in July: Job No.   Style Quantity Direct Materials Direct Labor 201   T100 230     $21,330       $17,000     202   T200 400     31,100       26,000     203   T400 180     12,960       7,000     204   S200 310     34,410       31,000     205   T300 150     15,600       14,000     206   S100 100     6,900       3,000         Total 1,370     $122,300       $98,000     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: Job No. Style Work in Process, June 1 201 T100 $6,600       202 T200 15,900       Total   $22,500       d. Customer jobs completed and units sold in July were as follows: Job No. Style Completed in July Units Sold in July 201 T100 X 184   202 T200 X 320   203 T400   0   204 S200 X 260   205 T300 X 125   206 S100   0   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. Job No. Quantity June 1 Work in Process Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold No. 201 fill in the blank 1 $ 6,600   $ 21,330   $ 17,000   $fill in the blank 2   $fill in the blank 3   $fill in the blank 4   fill in the blank 5   $fill in the blank 6   No. 202 fill in the blank 7 15,900   31,100   26,000   fill in the blank 8   fill in the blank 9   fill in the blank 10   fill in the blank 11   fill in the blank 12   No. 203 fill in the blank 13     12,960   7,000   fill in the blank 14   fill in the blank 15       fill in the blank 16   fill in the blank 17   No. 204 fill in the blank 18     34,410   31,000   fill in the blank 19   fill in the blank 20   fill in the blank 21   fill in the blank 22   fill in the blank 23   No. 205 fill in the blank 24     15,600   14,000   fill in the blank 25   fill in the blank 26   fill in the blank 27   fill in the blank 28   fill in the blank 29   No. 206 fill in the blank 30     6,900   3,000   fill in the blank 31   fill in the blank 32       fill in the blank 33   fill in the blank 34   Total fill in the blank 35 $22,500   122,300   98,000   $fill in the blank 36   $fill in the blank 37           $fill in the blank 38   a. Materials Requisitions  $fill in the blank 39 b. Work in Process Beginning Balance  $fill in the blank 40 c. Direct Materials  $fill in the blank 41 d. Direct Labor  $fill in the blank 42 e. Factory overhead applied  $fill in the blank 43 f. Completed jobs  $fill in the blank 44 g. Cost of goods sold  $fill in the blank 45 h. Indirect labor  $fill in the blank 46 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: $fill in the blank 47 Work in Process: $fill in the blank 48 Finished Goods: $fill in the blank 49 Factory Overhead: $fill in the blank 50   Feedback   1 a & c. Direct and Indirect materials are requisitioned. Direct materials are recorded in Work in Process and Indirect materials are recorded in Factory overhead. b. The beginning work in process information is given. d, e & h. Direct labor cost information is given. Overhead is applied based on direct labor cost. f & g. Beginning Work in Process balances plus all current period manufacturing costs are included in the cost of completed jobs and jobs sold. 2. Insert your amounts calculated in (1) into the T accounts. Then determine the ending balances.

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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:


Materials
June 1 Balance 28,600 June 30 Requisitions (A)
June 30 Purchases 115,000      


Work in Process
June 1 Balance (B) June 30 Completed jobs (F)
June 30 Materials (C)      
June 30 Direct labor (D)      
June 30 Factory overhead applied (E)      


Finished Goods
June 1 Balance 0 June 30 Cost of goods sold (G)
June 30 Completed jobs (F)      


Wages Payable
      June 30 Wages incurred 122,500
           


Factory Overhead
June 1 Balance 22,500 June 30 Factory overhead applied (E)
June 30 Indirect labor (H)      
June 30 Indirect materials 15,300      
June 30 Other overhead 108,500      

In addition, the following information is available:

a. Materials and direct labor were applied to six jobs in July:

Job No.   Style Quantity Direct Materials Direct Labor
201   T100 230     $21,330       $17,000    
202   T200 400     31,100       26,000    
203   T400 180     12,960       7,000    
204   S200 310     34,410       31,000    
205   T300 150     15,600       14,000    
206   S100 100     6,900       3,000    
    Total 1,370     $122,300       $98,000    

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:

Job No. Style Work in Process, June 1
201 T100 $6,600      
202 T200 15,900      
Total   $22,500      

d. Customer jobs completed and units sold in July were as follows:

Job No. Style Completed in July Units Sold in July
201 T100 X 184  
202 T200 X 320  
203 T400   0  
204 S200 X 260  
205 T300 X 125  
206 S100   0  

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.


Job No. Quantity June 1
Work in
Process
Direct
Materials
Direct
Labor
Factory
Overhead
Total Cost Unit Cost Units Sold Cost of Goods Sold
No. 201 fill in the blank 1 $ 6,600   $ 21,330   $ 17,000   $fill in the blank 2   $fill in the blank 3   $fill in the blank 4   fill in the blank 5   $fill in the blank 6  
No. 202 fill in the blank 7 15,900   31,100   26,000   fill in the blank 8   fill in the blank 9   fill in the blank 10   fill in the blank 11   fill in the blank 12  
No. 203 fill in the blank 13     12,960   7,000   fill in the blank 14   fill in the blank 15       fill in the blank 16   fill in the blank 17  
No. 204 fill in the blank 18     34,410   31,000   fill in the blank 19   fill in the blank 20   fill in the blank 21   fill in the blank 22   fill in the blank 23  
No. 205 fill in the blank 24     15,600   14,000   fill in the blank 25   fill in the blank 26   fill in the blank 27   fill in the blank 28   fill in the blank 29  
No. 206 fill in the blank 30     6,900   3,000   fill in the blank 31   fill in the blank 32       fill in the blank 33   fill in the blank 34  
Total fill in the blank 35 $22,500   122,300   98,000   $fill in the blank 36   $fill in the blank 37           $fill in the blank 38  

a. Materials Requisitions  $fill in the blank 39

b. Work in Process Beginning Balance  $fill in the blank 40

c. Direct Materials  $fill in the blank 41

d. Direct Labor  $fill in the blank 42

e. Factory overhead applied  $fill in the blank 43

f. Completed jobs  $fill in the blank 44

g. Cost of goods sold  $fill in the blank 45

h. Indirect labor  $fill in the blank 46

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: $fill in the blank 47
Work in Process: $fill in the blank 48
Finished Goods: $fill in the blank 49
Factory Overhead: $fill in the blank 50
 
Feedback
 

1
a & c. Direct and Indirect materials are requisitioned. Direct materials are recorded in Work in Process and Indirect materials are recorded in Factory overhead.

b. The beginning work in process information is given.

d, e & h. Direct labor cost information is given. Overhead is applied based on direct labor cost.

f & g. Beginning Work in Process balances plus all current period manufacturing costs are included in the cost of completed jobs and jobs sold.

2. Insert your amounts calculated in (1) into the T accounts. Then determine the ending balances.

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