Bell Company’s fiscal year ends on June 30. The following accounts are found in its job order cost… 1 answer below »

Bell Company’s fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year.

Raw Materials Inventory

July 1

Beginning balance

19,000

July 31

Requisitions

(a)

31

Purchases

90,400

July 31

Ending balance

(b)

Work in Process Inventory

July 1

Beginning balance

(c)

July 31

Jobs completed

(f)

31

Direct materials

75,000

31

Direct labor

(d)

31

Overhead

(e)

July 31

Ending balance

(g)

Finished Goods Inventory

July 1

Beginning balance

(h)

July 31

Cost of goods sold

(j)

31

Completed jobs

(i)

July 31

Ending balance

(k)

Factory Labor

July 31

Factory wages

(l)

July 31

Wages assigned

(m)

Manufacturing Overhead

July 31

Indirect materials

8,900

July 31

Overhead applied

114,000

31

Indirect labor

16,000

31

Other overhead

(n)

Other data:

1. On July 1, two jobs were in process: Job No. 4085 and Job No. 4086, with costs of $19,000 and $13,200, respectively.

2. During July, Job Nos. 4087, 4088, and 4089 were started. On July 31, only Job No. 4089 was unfinished. This job had charges for direct materials $2,000 and direct labor $1,500, plus manufacturing overhead. Manufacturing overhead was applied at the rate of 120% of direct labor cost.

3. On July 1, Job No. 4084, costing $145,000, was in the finished goods warehouse. On July 31, Job No. 4088, costing $138,000, was in finished goods.

4. Overhead was $3,000 underapplied in July.

Instructions

List the letters (a) through (n) and indicate the amount pertaining to each letter. Show computations.

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