Chapter 16, Problem 16.4APR

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:

Matenals

In addition, the following information is available:

1. 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
20S	T300	480	60,000	48,000
206	S100	380	22,000	12,400
Total		3,720	$351,500	$264,450

1. B. Factory overhead is applied to each job at a rate of 140% of direct Libor cost.
2. C. The June 1 Work Process balance consisted of two jobs, as follow

		Work in Process,
Job No.	Style	June 1
201	T100	$16,500
202	T200	44,000
Total		$60,500

1. D. Customer jobs completed and units sold in June were at follows

Job Mo.	Style	Completed In June	Units Sold in June
201	T100	X	440
202	T200	X	880
203	T400		0
204	S200	X	570
20S	T300	X	420
206	S100		0

Instructions

1. 1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:

Job No

Quantity

June 1 Work in Process

Direct Materials

Direct Labor

Factory Overhead

Total Cost

Unit Cost

Units Sold

Cost of Goods Sold

1. 2. Determine the June 30 balances for each of the inventory accounts and factory overhead.