Analyzing Manufacturing Cost Accounts
OBJ.2 Describe and illustrate a job order cost accounting system.
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:
In addition, the following information is available:
Materials and direct labor were applied to six jobs in June:
Factory overhead is applied to each job at a rate of of direct labor cost.
The June 1 Work in Process balance consisted of two jobs, as follows:
Customer jobs completed and units sold in June were as follows:
Instructions
Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:
Determine the June 30 balances for each of the inventory accounts and factory overhead.