Question

Chapter16 ook Calculator Analyzing Manufacturing Cost Accounts Fire Rock Company manufactures designer paddle boards in a wide variety of sures and styles. The following incomplete de acou June 1 Materials 28.000une 30 112,400 Balance Purchases Requisitions Work in Process ( une 30 Completed yobs June 1 June 30 June 30 June 30 Balance Materials Direct labor Factory overhead applied (C (0) Finished Goods obune 30 Cost of Balance Completed jobs June 30 Wages Payable une 30 Wages incurred

Answer 1

1.

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	220	6600	20760	17000	28900	73260	333	176	58608
No. 202	400	15900	31100	26000	44200	117200	293	320	93760
No. 203	180		10980	7000	11900	29880	166	0	0
No. 204	270		29160	27000	45900	102060	378	227	85806
No. 205	190		20600	17000	28900	66500	350	158	55300
No. 206	140		6940	5000	8500	20440	146	0	0
Total	1400	22500	119540	99000	168300	409340			293474

a. Material requisitions = Direct materials + Indirect materials = $119540 + $14900 = $134440

b. Work in process beginning balance = $22500

c. Direct materials = $119540

d. Direct labor = $99000

e. Factory overhead applied = 170% x $99000 = $168300

f. Completed jobs = $73260 + $117200 + $102060 + $66500 = $359020

g. Cost of goods sold = $293474

h. Indirect labor = Wages incurred - Direct labor = $123800 - $99000 = $24800

2. June 30 balances:

Materials = Beginning balance + Purchases - Requisitions = $28000 + $112400 - $134440 = $5960

Work in process = Total cost - Cost of completed jobs = $409340 - $359020 = $50320

Finished goods = Beginning balance + Completed jobs - Cost of goods sold = $0 + $359020 - $293474 = $65546

Factory overhead = Beginning balance + Indirect labor + Indirect materials + Other overhead - Factory overhead applied = $22500 + $24800 + $14900 + $110300 - $168300 = $4200