Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 16, Problem 16.4APR
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:
Matenals
In addition, the following information is available:
- A. Materials and direct labor were applied to six 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 |
| 20S | T300 | 480 | 60,000 | 48,000 |
| 206 | S100 | 380 | 22,000 | 12,400 |
| Total | 3,720 | $351,500 | $264,450 |
- B. Factory overhead is applied to each job at a rate of 140% of direct Libor cost.
- C. The June 1 Work Process balance consisted of two jobs, as follow
| Work in Process, | ||
| Job No. | Style | June 1 |
| 201 | T100 | $16,500 |
| 202 | T200 | 44,000 |
| Total | $60,500 |
- D. Customer jobs completed and units sold in June were at follows
| Job Mo. | Style | Completed In June | Units Sold in June |
| 201 | T100 | X | 440 |
| 202 | T200 | X | 880 |
| 203 | T400 | 0 | |
| 204 | S200 | X | 570 |
| 20S | T300 | X | 420 |
| 206 | S100 | 0 |
Instructions
- 1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:
| Job No | Quantity | June 1 Work in Process | Direct Materials | Direct Labor | Factory Overhead | Total Cost | Unit Cost | Units Sold | Cost of Goods Sold |
- 2. Determine the June 30 balances for each of the inventory accounts and factory overhead.
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Chapter 16 Solutions
Financial & Managerial Accounting
Ch. 16 - Prob. 1DQCh. 16 - What kind of firm would use a job order cost...Ch. 16 - Which account is used in the job order cost system...Ch. 16 - Prob. 4DQCh. 16 - What is a job cost sheet?Ch. 16 - Prob. 6DQCh. 16 - Discuss how the predetermined factory overhead...Ch. 16 - A. How is a predetermined factory overhead rate...Ch. 16 - Prob. 9DQCh. 16 - Describe how a job order cost .system can be used...
Ch. 16 - Issuance of materials On May 7, Bergan Company...Ch. 16 - Direct labor costs During May, Herman Company...Ch. 16 - Factory overhead costs During May, Bergan Company...Ch. 16 - Applying factory overhead Bergan Company estimates...Ch. 16 - Job costs At the end of May, Bergan Company had...Ch. 16 - Cost of goods sold Pine Creek Company completed...Ch. 16 - Transactions in a job order cost system Five...Ch. 16 - Cost flow relationships The following information...Ch. 16 - Cost of materials issuances under the FIFO method...Ch. 16 - Entry for issuing materials Materials issued for...Ch. 16 - Entries for materials GenX Furnishings Company...Ch. 16 - Entry for factory labor costs A summary of the...Ch. 16 - Entry for factory labor costs The weekly time...Ch. 16 - Entries for direct labor and factory overhead...Ch. 16 - Factory overhead rates, entries, and account...Ch. 16 - Predetermined factory overhead rate Spring Street...Ch. 16 - Predetermined factory overhead rate Poehling...Ch. 16 - Entry for jobs completed; cost of unfinished jobs...Ch. 16 - Entries for factory costs and jobs completed Old...Ch. 16 - Financial statements of a manufacturing firm The...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Entries for costs in a job order cost system...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job order cost sheet Remnant Carpet Company sells...Ch. 16 - Analyzing manufacturing cost accounts Fire Rock...Ch. 16 - Flow of costs and income statement Ginocera Inc....Ch. 16 - Entries for costs in a job order cost system Royal...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job order cost sheet Stretch and Trim Carpet...Ch. 16 - Analyzing manufacturing cost accounts Clapton...Ch. 16 - Prob. 16.5BPRCh. 16 - Prob. 16.1TIFCh. 16 - Team Activity As an assistant cost accountant for...Ch. 16 - Carol Creedence, the plant manager of the...
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