Problem 20-5A

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

Other data:

1.

On   December 1, two jobs were in process: Job No. 154 and Job No. 155. These jobs   had combined direct materials costs of $9,750 and direct labor costs of   $15,000. Overhead was applied at a rate that was 75% of direct labor cost.

2.

During   December, Job Nos. 156, 157, and 158 were started. On December 31, Job No.   158 was unfinished. This job had charges for direct materials $3,800 and   direct labor $4,800, plus manufacturing overhead. All jobs, except for Job   No. 158, were completed in December.

3.

On   December 1, Job No. 153 was in the finished goods warehouse. It had a total   cost of $5,000. On December 31, Job No. 157 was the only job finished that   was not sold. It had a cost of $4,000.

4.

Manufacturing   overhead was $1,470 underapplied in December.

 List the letters (a) through (m) and indicate the amount pertaining to each letter.

List the letters (a) through (m) and indicate the amount pertaining to each letter.

Raw Materials   Inventory

Dec. 1

Beginning   balance

(a)

Dec. 31

Requisitions

16,850

31

Purchases

17,225

Dec. 31

Ending   balance

7,975

Work in Process   Inventory

Dec. 1

Beginning   balance

(b)

Dec. 31

Jobs   completed

(f)

31

Direct   materials

(c)

31

Direct   labor

8,400

31

Overhead

(d)

Dec. 31

Ending   balance

(e)

Finished Goods   Inventory

Dec. 1

Beginning   balance

(g)

Dec. 31

Cost of   goods sold

(i)

31

Completed   jobs

(h)

Dec. 31

Ending   balance

(j)

Factory Labor 

Dec. 31

Factory   wages

12,025

Dec. 31

Wages   assigned

(k)

Manufacturing   Overhead

Dec. 31

Indirect   materials

2,900

Dec. 31

Overhead   applied

(m)

31

Indirect   labor

(l)

31

Other overhead

1,245