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 June 1 Balance 82,500 June 30 Requisitions (a) 30 Purchases 330,000 Work in Process June 1 Balance (b) June 30 Completed jobs (f) 30 Materials (c) 30 Direct labor (d) 30 Factory overhead applied (e) Finished Goods June 1 Balance 0 June 30 Cost of goods sold (g) 30 Completed jobs (f) Wages Payable June 30 Wages incurred 330,000 Factory Overhead June 1 Balance 33,000 June 30 Factory overhead applied (e) 30 Indirect labor (h) 30 Indirect materials 44,000 30 Other overhead 237,500 In addition, the following information is available: Materials and direct labor were applied to the following jobs in June: Job No. Style Quantity Direct Materials Direct Labor 201 T100 550 $55,000 $41,250 202 T200 1,100 93,500 71,500 203 T400 550 38,500 22,000 204 S200 660 82,500 69,300 205 T300 480 60,000 48,000 206 S100 380 22,000 12,400 Total 3,720 $351,500 $264,450 Factory overhead is applied to each job at a rate of 140% of direct labor cost. The June 1 Work in Process balance consisted of two jobs, as follows: Job No. Style Work in Process, June 1 201 T100 $16,500 202 T200 44,000 Total $60,500 Customer jobs completed and units sold in June were as follows: Job No. Style Completed in June Units Sold in June 201 T100 X 440 202 T200 X 880 203 T400 0 204 S200 X 570 205 T300 X 420 206 S100 0 Required: 1. Determine the missing amounts associated with each letter by completing the table below. If an answer is zero, enter in "0". Enter all amounts as positive numbers. Job No. Quan- tity June 1 Work in Process Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold No. 201 550 $ $55,000 $41,250 $ $ $ $ No. 202 1,100 93,500 71,500 No. 203 550 38,500 22,000 No. 204 660 82,500 69,300 No. 205 480 60,000 48,000 No. 206 380 22,000 12,400 Total 3,720 $ $351,500 $264,450 $ $ $ A. Materials Requisitions $ B. Work in Process Beginning Balance $ C. Direct Materials $ D. Direct Labor $ E. Factory overhead applied $ F. Completed jobs $ G. Cost of goods sold $ H. Indirect labor $ 2. Determine the June 30 balances for each of the inventory accounts and factory overhead. Materials $ Work in Process $ Finished Goods $ Factory Overhead $
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 June 1 Balance 82,500 June 30 Requisitions (a) 30 Purchases 330,000 Work in Process June 1 Balance (b) June 30 Completed jobs (f) 30 Materials (c) 30 Direct labor (d) 30 Factory overhead applied (e) Finished Goods June 1 Balance 0 June 30 Cost of goods sold (g) 30 Completed jobs (f) Wages Payable June 30 Wages incurred 330,000 Factory Overhead June 1 Balance 33,000 June 30 Factory overhead applied (e) 30 Indirect labor (h) 30 Indirect materials 44,000 30 Other overhead 237,500 In addition, the following information is available: Materials and direct labor were applied to the following jobs in June: Job No. Style Quantity Direct Materials Direct Labor 201 T100 550 $55,000 $41,250 202 T200 1,100 93,500 71,500 203 T400 550 38,500 22,000 204 S200 660 82,500 69,300 205 T300 480 60,000 48,000 206 S100 380 22,000 12,400 Total 3,720 $351,500 $264,450 Factory overhead is applied to each job at a rate of 140% of direct labor cost. The June 1 Work in Process balance consisted of two jobs, as follows: Job No. Style Work in Process, June 1 201 T100 $16,500 202 T200 44,000 Total $60,500 Customer jobs completed and units sold in June were as follows: Job No. Style Completed in June Units Sold in June 201 T100 X 440 202 T200 X 880 203 T400 0 204 S200 X 570 205 T300 X 420 206 S100 0 Required: 1. Determine the missing amounts associated with each letter by completing the table below. If an answer is zero, enter in "0". Enter all amounts as positive numbers. Job No. Quan- tity June 1 Work in Process Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold No. 201 550 $ $55,000 $41,250 $ $ $ $ No. 202 1,100 93,500 71,500 No. 203 550 38,500 22,000 No. 204 660 82,500 69,300 No. 205 480 60,000 48,000 No. 206 380 22,000 12,400 Total 3,720 $ $351,500 $264,450 $ $ $ A. Materials Requisitions $ B. Work in Process Beginning Balance $ C. Direct Materials $ D. Direct Labor $ E. Factory overhead applied $ F. Completed jobs $ G. Cost of goods sold $ H. Indirect labor $ 2. Determine the June 30 balances for each of the inventory accounts and factory overhead. Materials $ Work in Process $ Finished Goods $ Factory Overhead $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 4PA: Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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 | 82,500 | June 30 | Requisitions | (a) |
| 30 | Purchases | 330,000 |
| Work in Process | |||||
|---|---|---|---|---|---|
| June 1 | Balance | (b) | June 30 | Completed jobs | (f) |
| 30 | Materials | (c) | |||
| 30 | Direct labor | (d) | |||
| 30 | Factory overhead applied | (e) |
| Finished Goods | |||||
|---|---|---|---|---|---|
| June 1 | Balance | 0 | June 30 | Cost of goods sold | (g) |
| 30 | Completed jobs | (f) |
| Wages Payable | |||||
|---|---|---|---|---|---|
| June 30 | Wages incurred | 330,000 | |||
| Factory Overhead | |||||
|---|---|---|---|---|---|
| June 1 | Balance | 33,000 | June 30 | Factory overhead applied | (e) |
| 30 | Indirect labor | (h) | |||
| 30 | Indirect materials | 44,000 | |||
| 30 | Other overhead | 237,500 |
In addition, the following information is available:
- Materials and direct labor were applied to the following jobs in June:
Job No. Style Quantity Direct Materials Direct Labor 201 T100 550 $55,000 $41,250 202 T200 1,100 93,500 71,500 203 T400 550 38,500 22,000 204 S200 660 82,500 69,300 205 T300 480 60,000 48,000 206 S100 380 22,000 12,400 Total 3,720 $351,500 $264,450 - Factory overhead is applied to each job at a rate of 140% of direct labor cost.
- The June 1 Work in Process balance consisted of two jobs, as follows:
Job No. Style Work in Process,
June 1201 T100 $16,500 202 T200 44,000 Total $60,500 - Customer jobs completed and units sold in June were as follows:
Job No. Style Completed
in JuneUnits Sold
in June201 T100 X 440 202 T200 X 880 203 T400 0 204 S200 X 570 205 T300 X 420 206 S100 0
Required:
1. Determine the missing amounts associated with each letter by completing the table below. If an answer is zero, enter in "0". Enter all amounts as positive numbers.
| Job No. | Quan- tity |
June 1 Work in Process |
Direct Materials | Direct Labor | Factory Overhead | Total Cost | Unit Cost | Units Sold | Cost of Goods Sold | |||||||||
| No. 201 | 550 | $ | $55,000 | $41,250 | $ | $ | $ | $ | ||||||||||
| No. 202 | 1,100 | 93,500 | 71,500 | |||||||||||||||
| No. 203 | 550 | 38,500 | 22,000 | |||||||||||||||
| No. 204 | 660 | 82,500 | 69,300 | |||||||||||||||
| No. 205 | 480 | 60,000 | 48,000 | |||||||||||||||
| No. 206 | 380 | 22,000 | 12,400 | |||||||||||||||
| Total | 3,720 | $ | $351,500 | $264,450 | $ | $ | $ |
A. Materials Requisitions $
B. Work in Process Beginning Balance $
C. Direct Materials $
D. Direct Labor $
E. Factory overhead applied $
F. Completed jobs $
G. Cost of goods sold $
H. Indirect labor $
2. Determine the June 30 balances for each of the inventory accounts and factory overhead.
| Materials | $ |
| Work in Process | $ |
| Finished Goods | $ |
| Factory Overhead | $ |
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