FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Analyzing
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 | |||||
|---|---|---|---|---|---|
| June 1 | Balance | 30,100 | June 30 | Requisitions | (A) |
| June 30 | Purchases | 121,000 |
| Work in Process | |||||
|---|---|---|---|---|---|
| June 1 | Balance | (B) | June 30 | Completed jobs | (F) |
| June 30 | Materials | (C) | |||
| June 30 | Direct labor | (D) | |||
| June 30 | Factory |
(E) |
| Finished Goods | |||||
|---|---|---|---|---|---|
| June 1 | Balance | 0 | June 30 | Cost of goods sold | (G) |
| June 30 | Completed jobs | (F) |
| Wages Payable | |||||
|---|---|---|---|---|---|
| June 30 | Wages incurred | 120,000 | |||
| Factory Overhead | |||||
|---|---|---|---|---|---|
| June 1 | Balance | 21,800 | June 30 | Factory overhead applied | (E) |
| June 30 | Indirect labor | (H) | |||
| June 30 | Indirect materials | 16,100 | |||
| June 30 | Other overhead | 95,400 |
In addition, the following information is available:
a. Materials and direct labor were applied to six jobs in July:
| Job No. | Style | Quantity | Direct Materials | Direct Labor | ||||||||
| 201 | T100 | 210 | $20,870 | $16,000 | ||||||||
| 202 | T200 | 400 | 33,800 | 25,000 | ||||||||
| 203 | T400 | 210 | 14,690 | 8,000 | ||||||||
| 204 | S200 | 270 | 33,750 | 27,000 | ||||||||
| 205 | T300 | 160 | 17,000 | 15,000 | ||||||||
| 206 | S100 | 150 | 8,600 | 5,000 | ||||||||
| Total | 1,400 | $128,710 | $96,000 |
b. Factory overhead is applied to each job at a rate of 160% of direct labor cost.
c. The June 1 Work in Process balance consisted of two jobs, as follows:
| Job No. | Style | Work in Process, June 1 | |||
| 201 | T100 | $6,200 | |||
| 202 | T200 | 15,600 | |||
| Total | $21,800 |
d. Customer jobs completed and units sold in July were as follows:
| Job No. | Style | Completed in July | Units Sold in July | |
| 201 | T100 | X | 168 | |
| 202 | T200 | X | 320 | |
| 203 | T400 | 0 | ||
| 204 | S200 | X | 227 | |
| 205 | T300 | X | 133 | |
| 206 | S100 | 0 |
1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter all amounts as positive numbers.
| 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 | fill in the blank 1 | $ 6,200 | $ 20,870 | $ 16,000 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 | fill in the blank 5 | $fill in the blank 6 | ||||||||
| No. 202 | fill in the blank 7 | 15,600 | 33,800 | 25,000 | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | ||||||||
| No. 203 | fill in the blank 13 | 14,690 | 8,000 | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | ||||||||||
| No. 204 | fill in the blank 18 | 33,750 | 27,000 | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | fill in the blank 22 | fill in the blank 23 | |||||||||
| No. 205 | fill in the blank 24 | 17,000 | 15,000 | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | fill in the blank 28 | fill in the blank 29 | |||||||||
| No. 206 | fill in the blank 30 | 8,600 | 5,000 | fill in the blank 31 | fill in the blank 32 | fill in the blank 33 | fill in the blank 34 | ||||||||||
| Total | fill in the blank 35 | $21,800 | 128,710 | 96,000 | $fill in the blank 36 | $fill in the blank 37 | $fill in the blank 38 |
a. Materials Requisitions $fill in the blank 39
b. Work in Process Beginning Balance $fill in the blank 40
c. Direct Materials $fill in the blank 41
d. Direct Labor $fill in the blank 42
e. Factory overhead applied $fill in the blank 43
f. Completed jobs $fill in the blank 44
g. Cost of goods sold $fill in the blank 45
h. Indirect labor $fill in the blank 46
2. Determine the June 30 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.
| Materials: | $fill in the blank 47 |
| Work in Process: | $fill in the blank 48 |
| Finished Goods: | $fill in the blank 49 |
| Factory Overhead: | $fill in the blank 50 |
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