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.
