19-2

Analyzing Manufacturing Cost Accounts

Clapton Company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May:

Materials
May 1	Balance	33,500	May 31	Requisitions	(a)
31	Purchases	134,500

Work in Process
May 1	Balance	(b)	31	Completed jobs	(f)
31	Materials	(c)
31	Direct labor	(d)
31	Factory overhead applied	(e)

Finished Goods
May 1	Balance	0	May 31	Cost of goods sold	(g)
31	Completed jobs	(f)

Wages Payable
			May 31	Wages incurred	120,000

Factory Overhead
May 1	Balance	22,200	May 31	Factory overhead applied	(e)
31	Indirect labor	(h)
31	Indirect materials	17,900
31	Other overhead	73,100

In addition, the following information is available:

Materials and direct labor were applied to the following jobs in May:

Job No.		Style	Quantity		Direct Materials				Direct Labor
101		AF1	190			$21,570				$15,000
102		AF3	420			39,660				27,000
103		AF2	180			13,620				7,000
104		VY1	280			38,920				28,000
105		VY2	160			21,600				15,000
106		AF4	130			7,690				4,000
		Total	1,360			$143,060				$96,000

Factory overhead is applied to each job at a rate of 140% of direct labor cost.

The May 1 Work in Process balance consisted of two jobs, as follows:

Job No.	Style	Work in Process, May 1
101	AF1	$5,700
102	AF3	16,500
Total		$22,200

Customer jobs completed and units sold in May were as follows:

Job No.	Style	Completed in May	Units Sold in May
101	AF1	X	152
102	AF3	X	336
103	AF2		0
104	VY1	X	235
105	VY2	X	133
106	AF4		0

Required:

1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter all amounts as positive numbers.

Job No.

Quantity

May 1 Work in Process

Direct Materials

Direct Labor

Factory Overhead

Total Cost

Unit Cost

Units Sold

Cost of Goods Sold

No. 101

fill in the blank 1

$ 5,700

$ 21,570

$ 15,000

$fill in the blank 2

$fill in the blank 3

$fill in the blank 4

fill in the blank 5

$fill in the blank 6

No. 102

fill in the blank 7

16,500

39,660

27,000

fill in the blank 8

fill in the blank 9

fill in the blank 10

fill in the blank 11

fill in the blank 12

No. 103

fill in the blank 13

13,620

7,000

fill in the blank 14

fill in the blank 15

fill in the blank 16

fill in the blank 17

No. 104

fill in the blank 18

38,920

28,000

fill in the blank 19

fill in the blank 20

fill in the blank 21

fill in the blank 22

fill in the blank 23

No. 105

fill in the blank 24

21,600

15,000

fill in the blank 25

fill in the blank 26

fill in the blank 27

fill in the blank 28

fill in the blank 29

No. 106

fill in the blank 30

7,690

4,000

fill in the blank 31

fill in the blank 32

fill in the blank 33

fill in the blank 34

Total

fill in the blank 35

$22,200

$143,060

$96,000

$fill in the blank 36

$fill in the blank 37

$fill in the blank 38

a. Materials Requisitions $fill in the blank 39

b. Work in Process Beginning Balance $fill in the blank 40

c. Direct Materials $fill in the blank 41

d. Direct Labor $fill in the blank 42

e. Factory overhead applied $fill in the blank 43

f. Completed jobs $fill in the blank 44

g. Cost of goods sold $fill in the blank 45

h. Indirect labor $fill in the blank 46

2. Determine the May 31 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.

Materials	$fill in the blank 47
Work in Process	$fill in the blank 48
Finished Goods	$fill in the blank 49
Factory Overhead	$fill in the blank 50