Question

PR 16-4A Analyzing manufacturing cost accounts 

Fire Rock Company manufactures designer paddleboards in at wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June

Answer 1

Part 1

Job No.	Quantity	July 1 Work in Process	Direct Materials	Direct Labor	Factory Overhead (direct labor*140%)	Total Cost	Unit Cost (total cost / quantity)	Units Sold	Cost of Goods Sold
No. 21	550	16500	55000	41250	57750	170500	310	440	136400
No. 22	1100	44000	93500	71500	100100	309100	281	880	247280
No. 23	550		38500	22000	30800			0
No. 24	660		82500	69300	97020	248820	377	570	214890
No. 25	480		60000	48000	67200	175200	365	420	153300
No. 26	380		22000	12400	17360	51760		0
Total	3720	60500	351500	264450	370230	1046680			751870

Letter	Missing amount	Explanation
A	395500	Materials applied to production in June + indirect materials. (351500+44000)
B	60500	From table above
C	351500	From table above
D	264450	From table above
E	370230	(264450*140%)
F	903620	(170500+309100+248820+175200)
G	751870	From table above
H	65550	Wages incurred - direct labor applied to production in June (330000-264450)

Part 2

June balances:

Materials	17000	(82500+330000-395500)
Work in process	143060	(60500+351500+264450+370230-903620)
Finished goods	151750	(903620-751870)
Factory overhead	9820 Dr. underapplied	(33000+44000+237500+65550-370230)