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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	33,400	June 30	Requisitions	(A)
June 30	Purchases	134,000

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	21,800	June 30	Factory overhead applied	(E)
June 30	Indirect labor	(H)
June 30	Indirect materials	17,800
June 30	Other overhead	86,200

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			$25,550				$17,000
202		T200	390			36,050				24,000
203		T400	200			13,400				8,000
204		S200	290			38,460				28,000
205		T300	180			22,480				17,000
206		S100	110			6,610				4,000
		Total	1,400			$142,550				$98,000

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	$6,700
202	T200	15,100
Total		$21,800

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	312
203	T400		0
204	S200	X	244
205	T300	X	149
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		$ 6,700		$ 25,550		$ 17,000		$		$		$				$
No. 202		15,100		36,050		24,000
No. 203				13,400		8,000
No. 204				38,460		28,000
No. 205				22,480		17,000
No. 206				6,610		4,000
Total		$21,800		142,550		98,000		$		$						$

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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