Question

Phillips Corporation's fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. Other data: 1. On December 1, two jobs were in process: Job No. 154 and Job No. 155. These jobs had combined direct materials costs of $9,950 and direct labor costs of $17,100. Overhead was applied at a rate that was 75% of direct labor cost. 2. During December, Job Nos. 156, 157, and 158 were started. On December 31, Job No. 158 was unfinished. This job had charges for direct materials $4,200 and direct labor $5,200, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December 3. On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,400. On December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,100. 4. Manufacturing overhead was $1,145 underapplied in December 17,650 List the letters (a) through (m) and indicate the amount pertaining to each letter. Raw Materials Inventory Dec. 1 Beginning balance (a) Dec 31 Requisitions 31 Purchases 19,125 Dec. 31 Ending balance 8,155 Work in Process Inventory Dec. 1 Beginning balance (b) Dec 31 Jobs completed 31 Direct materials 31 Direct labor 31 Overhead 9,100 Dec. 31 Ending balance Finished Goods Inventory (9) Dec. 31 Cost of goods sold Dec. 1 Beginning balance 31 Completed jobs () Dec. 31 Ending balance 8:20 PM

Answer 1

Raw Material Inventory
Dec. 01	Beginning balance (a)	$6,680	Dec. 31	Recquistions	$17,650
Dec. 31	Purchases	$19,125
Dec. 31	Ending balance	$8,155
Work in process inventory
Dec. 01	Beginning balance (b)	$39,875	Dec. 31	Job completed    (f)	$57,150
Dec. 31	Direct materials (c )	$14,650		(b+c+Direct labor +d - e)
Dec. 31	Direct labor	$9,100
Dec. 31	Overhead ($9100 × 75%) (d)	$6,825
Dec. 31	Ending balance (e)	$13,300
Finished goods inventory
Dec. 01	Beginning balance (g)	$5,400	Dec. 31	Cost of goods sold    (i)	$58,450
Dec. 31	Completed jobs (h)	$57,150		(g+h-j)
Dec. 31	Ending balance (j)	$4,100
Factory labor
Dec. 31	Factory wages	$12,225	Dec. 31	wages assigned (k)	$1,225
Manufacturing overhead
Dec. 31	Indirect materials	$3,000	Dec. 31	Overhead applied (m)	$6,825
Dec. 31	Indirect labor (l)	$3,125
Dec. 31	Other overhead	$1,845

________________________________________________________

Working as follows:

(a)
Recquistions	$17,650
Add: Ending balance	$8,155
Less: Purchase	($19,125)
Beginning balance	$6,680
(b)
Direct material	$9,950
Direct labor	$17,100
Overhead ($17100 × 75%)	$12,825
	$39,875
( c)
Recquistions	$17,650
Less: Indirect material	($3,000)
	$14,650
(e)
Direct material	$4,200
Direct labor	$5,200
Overhead ($5200 × 75%)	$3,900
	$13,300
( l)
Wages assigned	$12,225
Less: Direct labor wages	($9,100)
	$3,125
( m)
Indirect material	$3,000
Indirect labor	$3,125
Other overhead	$1,845
Less: Underapplied	($1,145)
Overhead applied	$6,825