The following are partially completed T- accounts for JJ Wock. The accountant needs help filling in the remaining details of the accounts before closing month-end and starting next month’s transactions. Direct Materials Inventory: Beginning: 500 Ending: 1,200 Working in Progress Inventory Beginning: 2,100 Ending: 4,300 Finished Goods Inventory Beginning: 8,700 Ending: 12,500 Cost of Goods Sold: 217,000 The only additional information available for this month includes payroll records and a few other items, as follows. JJ Wock paid $88,000 in total payroll costs this month, split evenly between hourly manufacturing worker wages and manufacturing supervisor salaries. It paid $4,000 in total utility costs: 75% was for manufacturing facilities and 25% was for executive and administrative space. Buildings and equipment used in manufacturing are depreciated at a steady rate of $19,000 per month; buildings and office equipment in executive and administrative space is depreciated at a steady rate of $13,000 per month. Other indirect material and indirect labor costs amounted to $3,000. Required Determine the Cost of Goods Sold and the Cost of Gross Margin this month. Determine the total manufacturing costs for the month. Determine specific amounts for the following items this month: cost of direct materials used, cost of direct labor, and manufacturing overhead cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are partially completed T- accounts for JJ Wock. The accountant needs help filling in the remaining details of the accounts before closing month-end and starting next month’s transactions.

Direct Materials Inventory:

Beginning: 500

Ending: 1,200

Working in Progress Inventory

Beginning: 2,100

Ending: 4,300

Finished Goods Inventory

Beginning: 8,700

Ending: 12,500

Cost of Goods Sold: 217,000

The only additional information available for this month includes payroll records and a few other items, as follows.

JJ Wock paid $88,000 in total payroll costs this month, split evenly between hourly manufacturing worker wages and manufacturing supervisor salaries.
It paid $4,000 in total utility costs: 75% was for manufacturing facilities and 25% was for executive and administrative space.
Buildings and equipment used in manufacturing are depreciated at a steady rate of $19,000 per month; buildings and office equipment in executive and administrative space is depreciated at a steady rate of $13,000 per month.
Other indirect material and indirect labor costs amounted to $3,000.

Required

Determine the Cost of Goods Sold and the Cost of Gross Margin this month.
Determine the total manufacturing costs for the month.
Determine specific amounts for the following items this month: cost of direct materials used, cost of direct labor, and manufacturing overhead cost.

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