Analyzing Manufacturing Cost Accounts Big Wave Company manufactures surf boards

Question

Analyzing Manufacturing Cost Accounts Big Wave Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for July Materials uly 1 July 31 Balance 35,000puly 31 Requisitions Purchases 140,700 Work in Process uly 1 July 31 July 31 July 31 Balance Materials Direct labor Factory overhead applied (B)July 31 Completed jobs Finished Goods uly 1 July 31 Balance oDuly 31 Cost of goods sold Completed jobs Wages Payable uly 31 Wages incurred 118,800 Factory Overhead uly 1 July 31 July 31 July 31 Balance Indirect labor Indirect materials Other overhead 21,700uly 31 Factory overhead applied 18,700 71,600

Explanation / Answer

A)Material requisitions = direct material applied +indirect material

     = 149630+18700

     = $ 168330

B)WIP beginning balance :21700

c)Direct material149630

d)Direct labor : 95000

e)Factory overhead applied : 95000*140%=133000

f)completed jobs : beginning WIP +DM+DL+overhead

       = 21700+149630+95000+133000-51400

      = 347930

**ending WIP: cost of job x50+T10

    =[15420+7000+(7000*140%)]+[9580+4000+(4000*140%)]

    = 32220+19180

=51400

g)cost of goods sold: 284395

h)indirect labor : total wages -direct labor

       = 118800-95000

       = 23800

2)

material :35000 beginning+140700purchase-168330 requisitioned

        = 7370

WIP :ending WIP: cost of job x50+T10

    =[15420+7000+(7000*140%)]+[9580+4000+(4000*140%)]

    = 32220+19180

=51400

Finished goods :completed jobs -cost of goods sold

           =347930-284395

         = 63535

factory overhead :Overhead appied-actual overhead

     = 133000-[21700+18700+71600+23800]

     = 133000-135800

      = -5

Job no. quantity July 1 WIP Direct material + direct labor factory overhead Total cost unitcost unit sold cost of goods sold 21 210 6200 23860 16000 22400   [16000*140%] 68460 68460/210=326 168 326*168=54768 22 390 15500 38380 25000 35000 113880 113880/390=292 312 292*312=91104 23 180 15420 7000 9800 32220 32220/180=179 0 0 24 270 39420 27000 37800 104220 104220/270=386 227 386*227=87622 25 170 22970 16000 22400 61370 61370/170=361 141 361*141=50901 26 140 9580 4000 5600 19180 19180/140=137 0 0 Total 1360 21700 149630 95000 133000 397630 284395

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