Answer:
Phillips Corporation
a = 9,050 beginning balance Raw Materials
b = 36,660 beginning balance WIP
c = 15,650 direct materials
d = 6,825 Overhead applied
e = 13,500 Ending balance WIP
f = 5,500 beginning balance Finished Goods
g = 54,625 Completed jobs
h = 4,300 ending balance Finished Goods
i = 9,100 wages assigned
j = d
k = 3,125 indirect labor
l = 1,145 Underapplied overhead
m = 55,825 cost of goods sold
Explanation:
a) Data and Analysis:
1. Jobs in process:
Job No. 154 and Job No. 155
Combined direct materials costs $9,950
Combined direct labor costs 15,200
Overhead applied (75%) 11,400
Total work in process, beginning $36,550
2. Jobs started in December:
Job Nos. 156, 157, and 158
Direct materials $4,400
Direct labor 5,200
Overhead applied (75%) 3,900
Total work in process $13,500
Beginning work in process = $36,550
Ending work in process = $13,500
Beginning Finished Goods Inventory: Job 153 $5,500
Ending Finished Goods Inventory: Job 157 $4,300
Raw Materials Inventory
Dec. 1 Beginning balance 9,050 (a)
Dec. 31 Requisitions 18,950
Dec. 31 Purchases 18,025
Dec. 31 Ending balance 8,125
Total 27,075 27,075
a = $9,050 (27,075 - $18,025)
Work in Process Inventory
Dec. 1 Beginning balance $36,550 b.
Dec. 31 Jobs completed 54,625 (g)
Dec. 31 Direct materials 15,650 c.
Dec. 31 Direct labor 9,100
Dec. 31 Overhead 6,825 d.
Dec. 31 Ending balance 13,500 e.
Finished Goods Inventory
Dec. 1 Beginning balance 5,500 f
Dec. 31 Cost of goods sold 55,825 (m)
Dec. 31 Completed jobs 54,625 g.
g. Dec. 31 Ending balance 4,300 h
Factory Labor
Dec. 31 Factory wages 12,225
Dec. 31 Wages assigned 9,100
Dec. 31 Overhead 3,125
Manufacturing Overhead
Dec. 31 Indirect materials 3,300
Dec. 31 Overhead applied 6,825 d.
Dec. 31 Indirect labor 3,125 k.
Dec. 31 Other overhead 1,545
Dec. 31 Underapplied overhead 1,145
