Dupont Fishing Equipment Company manufactures fishing rods in a wide variety of lengths and weights. The following incomplete ledger accounts refer to transactions that are summarized for November:
|
Materials |
|||||
|
Nov. 1 |
Balance 10,000 |
|
Nov. 30 |
Requisitions |
(A) |
|
31 |
Purchases 120,000 |
|
|
|
|
|
Work in Process |
|||||
|
Nov. 1 |
Balance |
(B) |
Nov. 30 |
Completed jobs |
(F) |
|
30 |
Materials |
(C) |
|
|
|
|
30 |
Direct labor |
(D) |
|
|
|
|
30 |
Factory overhead applied |
(E) |
|
|
|
|
Finished Goods |
|||||
|
Nov. 1 |
Balance |
0 |
Nov. 30 |
Cost of goods sold |
(G) |
|
30 |
Completed jobs |
(F) |
|
|
|
|
Wages Payable |
|||||
|
|
|
|
Nov. 30 |
Wages incurred |
130,000 |
|
Factory Overhead |
|||||
|
Nov. 1 |
Balance |
2,500 |
Nov. 30 |
Factory overhead applied |
(E) |
|
30 |
Indirect labor |
(H) |
|
|
|
|
30 |
Indirect materials |
3,000 |
|
|
|
|
30 |
Other overhead |
60,000 |
|
|
|
In addition, the following information is available:
a. Materials and direct labor were applied to six jobs in November:
|
|
|
|
Direct |
Direct |
|
Job No. |
Style |
Quantity |
Materials |
Labor |
|
No. 111 |
DL 8 |
70 |
$ 15,000 |
$ 12,000 |
|
No. 112 |
DL 18 |
100 |
23,000 |
18,000 |
|
No. 113 |
DL 11 |
120 |
27,500 |
25,000 |
|
No. 114 |
SL 101 |
100 |
11,000 |
12,500 |
|
No. 115 |
SL 110 |
175 |
28,000 |
27,500 |
|
No. 116 |
DL 14 |
80 |
15,000 |
14,500 |
|
Total |
|
645 |
$119,500 |
$109,500 |
b. Factory overhead is applied to each job at a rate of 75% of direct labor cost.
c. The November 1 Work in Process balance consisted of two jobs, as follows:
|
|
|
Work in Process, |
|
Job No. |
Style |
November 1 |
|
Job 111 |
DL 8 |
$20,000 |
|
Job 112 |
DL 18 |
30,000 |
|
Total |
|
$50,000 |
d. Customer jobs completed and units sold in November were as follows:
|
|
|
Completed |
Units Sold in |
|
Job No. |
Style |
in November |
November |
|
Job 111 |
DL 8 |
X |
60 |
|
Job 112 |
DL 18 |
X |
100 |
|
Job 113 |
DL 11 |
X |
80 |
|
Job 114 |
SL 101 |
|
0 |
|
Job 115 |
SL 110 |
X |
150 |
|
Job 116 |
DL 14 |
|
0 |
Instructions
1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:
|
|
|
Nov. 1 |
|
|
|
|
|
|
Cost of |
|
Job |
|
Work in |
Direct |
Direct |
Factory |
Total |
Unit |
Units |
Goods |
|
No. |
Quantity |
Process |
Materials |
Labor |
Overhead |
Cost |
Cost |
Sold |
Sold |
2. Determine the November 30 balances for each of the inventory accounts and factory overhead.