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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	31,900	June 30	Requisitions	(A)
June 30	Purchases	128,200

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	118,800

Factory Overhead
June 1	Balance	21,100	June 30	Factory overhead applied	(E)
June 30	Indirect labor	(H)
June 30	Indirect materials	17,000
June 30	Other overhead	83,800

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	220			$24,380				$17,000
202		T200	370			34,560				23,000
203		T400	190			13,060				8,000
204		S200	260			33,540				26,000
205		T300	190			24,190				17,000
206		S100	110			6,610				4,000
		Total	1,340			$136,340				$95,000

b. Factory overhead is applied to each job at a rate of 150% 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	14,500
Total		$21,100

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	176
202	T200	X	296
203	T400		0
204	S200	X	218
205	T300	X	158
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		$ 6,600		$ 24,380		$ 17,000		$		$		$				$
No. 202		14,500		34,560		23,000
No. 203				13,060		8,000
No. 204				33,540		26,000
No. 205				24,190		17,000
No. 206				6,610		4,000
Total		$21,100		136,340		95,000		$		$						$

a. Materials Requisitions $

b. Work in Process Beginning Balance $

c. Direct Materials $

d. Direct Labor $

e. Factory overhead applied $

f. Completed jobs $

g. Cost of goods sold $

h. Indirect labor $

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:	$
Work in Process:	$
Finished Goods:	$
Factory Overhead:	$

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