Question

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 Requisitions June 1 June 30 Balance Purchases 32,000 June 30 128,700 Work in Process (B)June 30 Completed jobs (C) June 1 June 30 pune 30 June 30 Balance Materials Direct labor Factory overhead applied Finished Goods olJune 30 Cost of goods sold June 1 June 30 Balance Completed jobs Wages Payable no 25 Wanac incurred 121 2nn

Answer 1

A)Material requisition = Direct material used to Jobs +Indirect material

           =136880+17100

           = 153980

b)Work in process beginning= 22500

c)Direct material = Material requisition - indirect material

              = 153980 -17100

                 = 136880

d)Direct labor = 97000

e)Factory overhead applied = Direct labor cost *% of overhead applied

                = 97000* 150%

                 = 145500

f)completed Jobs :333750

Job	201	202	204	205	Total
Beginning work in process	5000	17500			22500
Direct material	17920	41070	41100	18660	118750
Direct labor	13000	28000	30000	15000	86000
overhead applied	13000*150%= 19500	28000*150%= 42000	30000*150%= 45000	15000*150%= 22500	129000
Total cost	50420	111070	116100	56160	333750

G)cost of goods sold = 273399

Job No.	Quantity	Work in progress June 1	Direct material	Direct labor	overhead applied	Total cost	Unit cost[Total cost /quantity]	Units sold	cost of goods sold [unit cost*unit sold]
201	170	5000	17920	13000	19500	50420	296.58824	136	40336
202	430	17500	41070	28000	42000	111070	258.30233	344	88856
204	300		41100	30000	45000	116100	387	252	97524
205	160		18660	15000	22500	56160	351	133	46683
									273399

H)

Indirect labor =wages payable -direct labor

          = 121300-97000

          = 24300