Analyzing Manufacturing Cost Accounts Big Wave Company manuf

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

Solution

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