Concept explainers
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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