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: May 1 Balance Materials 105,600 May 31 Requisitions (A) May 31 Purchases 500,000 Work in Process May 1 Balance May 31 Materials (B) May 31 Completed jobs (F) (C) May 31 Direct labor (D) May 31 Factory overhead applied (E) Finished Goods May 1 Balance 0 May 31 Cost of goods sold (G) May 31 Completed jobs (F) May 1 Balance May 31 Indirect labor May 31 Indirect materials May 31 Other overhead Wages Payable May 31 Wages incurred 396,000 Factory Overhead 26,400 May 31 Factory overhead applied (E) (H) 15,400 122,500 In addition, the following information is available: a. Materials and direct labor were applied to six jobs in May: Job No. Style Quantity Direct Materials Direct Labor 101 AF1 330 $82,500 $59,400 102 AF3 380 105,400 72,600 103 AF2 500 132,000 110,000 104 VY1 400 66,000 39,600 105 VY2 660 118,800 66,000 106 AF4 330 66,000 30,800 Total 2,600 $570,700 $378,400 b. Factory overhead is applied to each job at a rate of 50% of direct labor cost. c. The May 1 Work in Process balance consisted of two jobs, as follows: Work in Process, Job No. Style May 1 101 AF1 $26,400 102 AF3 46,000 Total $72,400