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:

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 une 1 Balance 35,800 June 30 Requisitions une 30 Purchases 143,900 Work in Process Balance Materials Direct labor Factory overhead applied (B) June 30 Completed jobs June 1 une 30 une 30 June 30 Finished Goods une 1 Balance OJune 30 Cost of goods sold une 30 Completed jobs Wages Payable une 30 Wages incurred 115,000

Answer 1

Ans-

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	170	$5,000	$20,690	$13,000	$16,900 ($13,000*130%)	$55,590	$327	136	$44,472
No. 202	420	$16,300	$ 43,600	$26,000	$33,800 ($26,000*130%)	$119,700	$285	336	$95,760
No. 203	210		$18,350	$8,000	$10,400 ($8,000*130%)	$36,750	$175	0	-
No. 204	250		$39,500	$25,000	$32,500 ($25,000*130%)	$97,500	$390	210	$81,900
No. 205	180		$24,800	17,000	$22,100 ($17,000*130%)	$63,900	$355	149	$52,895
No. 206	100		$6,100	3,000	$3,900 ($3,000*130%)	$13,000	$130	0	-
Total	1,330	$21,800	$153,040	$92,000	$ 119,600	$386,440			$275,027

a)- Material Requisition - WIP Inventory $153,040 + Factory Overhead $19,100= $172,140

b)- Work in process beginning balance =$21,800

c)-Direct materials= $153,040

d)-Direct Labor= $92,000

e)-Factory overhead applied= $119,600

f)-Completed jobs= Job 201,202, 204, 205 ($55,590+$119,700+$97,500+$63,900)= $336,690

g)-Cost of goods sold= $275,027

h)- Indirect labor= Wages incurred $115,000-92,000 WIP= $23,000 Indirect labor

2- June 30 balances:-

Materials	$7,560	(Beg. balance +Purchases -Requisition) ($35,800+$143,900-$172,140)
WIP	$49,750	(Job 203 and 206 Total Cost) ($36,750+$13,000)
Finished Goods	$61,663	(Balance unsold units *units cost) (34*$327+84*$285+40*$390+31*$355) ($11,118+$23,940+$15,600+11,005
Factory Overhead	$2,200	($21,300+$19,100+$58,400+$23,000-$119,600)

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