Big Wave Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for July:

In addition, the following information is available:a. Materials and direct labor were applied to six jobs in July:

b. Factory overhead is applied to each job at a rate of 160% of direct labor cost.c. The July 1 Work in Process balance consisted of two jobs, as follows:

d. Customer jobs completed and units sold in July were as follows:

Instructions1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:

2. Determine the July 31 balances for each of the inventory accounts and factoryoverhead.

Transcribed Image Text:

Materials July Balance 1 30,000 Purchase 31 120,000 Requisitions (A) 31 Work in Process July Balance (B) (C) (D) (E) (F) Materials 31 Direct labor 31 Factory overhead applied Completed jobs 31 31 Finished Goods July Balance Completed jobs Cost of goods sold (F) (G) 31 31 Wages Payable Wages incurred July 31 120,000 Factory Overhead July Balance 1 22,000 Indirect labor (H) 16,000 31 Indirect materials 31 Other overhead 31 95,000 Factory overhead apPplied (E) 31