You Are Asked to Bring the Following Incomplete Accounts of Parrish

question 51

Essay

You are asked to bring the following incomplete accounts of Parrish Printing Corporation up to date through January 31 of the current year.Consider the data that appear in the T-accounts as well as additional information given in items (a)through (i).
Parrish's job-order costing system has two direct cost categories (direct material and direct manufacturing labor)and one indirect cost pool (manufacturing overhead,which is allocated using direct manufacturing labor costs).

Materials Inventory Control		Wages Payable Control
12/31		Balance 15,000
Balance 15,000		Balance 3,000

		Manufacturing Department
		Overhead Control
Work in Process Inventory Control	January
	Charges 57,000

		Manufacturing Overhead Control

Finished Goods Inventory Control		Cost of Goods Sold
12/31
Balance 20,000

Additional Information:
a. Mranufactuing department overhead is allocated using a budgeted rate set every December. Management forec asts next year's overhead and next year's direct manufacturing labor costs. The budget for the current year is $\$ 400,000$ of direct manufacturinglabor and $\$ 600,000$ manufacturing overheach.

b. The only job unfinished on January 31 is No. 419, on which direct manufacturinglabor costs are $\$ 2,000$ (125 direct marnufacturing labor hours) and direct material costs are $\$ 8,000$ .
c. Total material place into prochuction churing January is $\$ 90,000$ .
d. Cost of goods completed during January is $\$ 180,000$ .
e. Material inventory as of J anuary 31 is $\$ 20,000$ .
f. Finished goods inventory as of Januay 31 is $\$ 15,000$ .
g. All plant workers earn the same wage rate. Direct manufacturing labor hours for J anuary total 2,500. Other labor and supeavision totals $\$ 10,000$ .
h. The gross plant payroll for January pay periods totals $\$ 52,000$ . Ignore with holdings. All personnel are paid on aweekly basis.
i. All" actual" manufacturing department overhead incurred chring January has alre ady been posted.
Required:
a. Material purchased during January
b. Cost of Goods Sold during J anuary
c. Direct Manufactuing Labor Costs incurred during J anuary
d. Manufacturing Overhead Allocated duxing Januaty
e. Balance, Wages Payable Contro1, December 31, prior year
f. Balance, Work in Process Inventory Control, Jamuary 31, curent year
g. Balance, Work in Process Inventory Control, December 31, prior year
h. Balance, Finished Goods Invent ory Control, Jamuay 31, current year i.Manufacturing Overhead underapplied or overapplied for January

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Definitions:

Return on Total Assets

A financial ratio that measures the effectiveness of a company in generating profit from its overall assets, calculated by dividing net income by total assets.