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:

 

June    1 Balance 82,500 June  30 Requisitions 30 Purchases 330,000       Â

Materials

 

 

 

(A)

 

 

Work in Process

 

Finished Goods

 

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

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
Â	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:

 

Work in Process,

Job no.	Style	June 1	Â
Job 201	T100	$16,500	Â
Job 202	T200	  44,000	Â
Total	Â	$60,500	Â

 

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

 

  Job no.	  Style	Completed in June	Units Sold in June
201	T100	X	440
202	T200	X	880
203	T400	Â	0
204	S200	X	570
205	T300	X	420
206	S100	Â	0

Instructions

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

 

June 1	Â	Â	Â	Â	Â	Cost of
Work in	Direct          Direct	Factory	Total	Unit	Units	Goods
Job no.     Quantity        Process	Materials         Labor	Overhead	Cost	Cost	Sold	Sold

 

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