Analyzing Manufacturing Cost Accounts
Jagger and Richards Company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for October:
In addition, the following information is available:
- Materials and direct labor were applied to six jobs in October:
- Factory overhead is applied to each job at a rate of 60% of direct labor cost.
- The October Work in Process balance consisted of two jobs, as follows:
- Customer jobs completed and units sold in October were as follows:
Instructions:
1.Determine the missing amounts associated with each letter by completing the table below. If an amount is zero, enter in “0”. Enter all amounts as positive numbers.
| Job No. | Style | Quan tity |
Oct. 1 Work in Process |
Direct Materials | Direct Labor | Factory Overhead | Total Cost | Unit Cost | Units Sold | Cost of Goods Sold |
| No. 101 | X 1 | 150 | $ | $37,500 | $27,000 | $ | $ | $ | $ | |
| No. 102 | X 3 | 175 | 48,000 | 33,000 | ||||||
| No. 103 | X 2 | 225 | 60,000 | 50,000 | ||||||
| No. 104 | S 1 | 175 | 30,000 | 18,000 | ||||||
| No. 105 | S 2 | 300 | 54,000 | 30,000 | ||||||
| No. 106 | X 4 | 150 | 30,000 | 14,000 | ||||||
| Total | 1,175 | $ | $259,500 | $172,000 | $ | $ | $ |
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2.Determine the October 31 balances for each of the inventory accounts and factory overhead.
| Materials: | $ |
| Work in Process: | $ |
| Finished Goods: | $ |
| Factory Overhead: | $ |