P 3. On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows: Materials Inventory, $21,360; Work in Process Inventory, $15,112; and Finished Goods Inventory, $17,120. Job order cost cards for jobs in process as of June 30 had these totals:
The predetermined overhead rate is 130 percent of direct labor costs. Materials
purchased and received in June were as follows:
June 4 $33,120
June 16 28,600
June 22 31,920
Direct labor costs for June were as follows:
June 15 payroll $23,680
June 29 payroll 25,960
Direct materials requested by production during June were as follows:
June 6 $37,240
June 23 38,960
On June 30, Princess Designs sold on account finished goods with a 75 percent markup over cost for $320,000.
Required
1. Using T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Overhead, Accounts Receivable, Payroll Payable, Sales, and Cost of Goods Sold, reconstruct the transactions in June.
2. Compute the cost of units completed during the month.
3. What was the total cost of goods sold during June?
4. Determine the ending inventory balances.
5. Jobs 24-A and 24-C were completed during the first week of July. No additional materials costs were incurred, but Job 24-A required $960 more of direct labor, and Job 24-C needed an additional $1,610 of direct labor. Job 24-A was composed of 1,200 pairs of trousers; Job 24-C, of 950 shirts. Compute the product unit cost for each job. (Round your answers to two
decimal places.)
Click here for the solution: On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows
