Question
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
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 | 32,500 | May 31 | Requisitions | (a) |
| 31 | Purchases | 130,700 | |||
| 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 | 20,000 | May 31 | Factory overhead applied | (e) |
| 31 | Indirect labor | (h) | |||
| 31 | Indirect materials | 17,400 | |||
| 31 | Other overhead | 85,900 | |||
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 | 180 | $20,620 | $13,000 | ||||||||
| 102 | AF3 | 370 | 34,350 | 24,000 | ||||||||
| 103 | AF2 | 230 | 17,060 | 9,000 | ||||||||
| 104 | VY1 | 300 | 38,500 | 29,000 | ||||||||
| 105 | VY2 | 170 | 20,860 | 16,000 | ||||||||
| 106 | AF4 | 130 | 7,650 | 5,000 | ||||||||
| Total | 1,380 | $139,040 | $96,000 | |||||||||
Factory overhead is applied to each job at a rate of 150% 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 | $5,200 | |||
| 102 | AF3 | 14,800 | |||
| Total | $20,000 | ||||
Customer jobs completed and units sold in May were as follows:
| Job No. | Style | Completed in May | Units Sold in May | |
| 101 | AF1 | X | 144 | |
| 102 | AF3 | X | 296 | |
| 103 | AF2 | 0 | ||
| 104 | VY1 | X | 252 | |
| 105 | VY2 | X | 141 | |
| 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 | $ 5,200 | $ 20,620 | $ 13,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank | fill in the blank | ||||||||
| No. 102 | fill in the blank | 14,800 | 34,350 | 24,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank | fill in the blank | ||||||||
| No. 103 | fill in the blank | 17,060 | 9,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank | ||||||||||
| No. 104 | fill in the blank | 38,500 | 29,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank | fill in the blank | |||||||||
| No. 105 | fill in the blank | 20,860 | 16,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank | fill in the blank | |||||||||
| No. 106 | fill in the blank | 7,650 | 5,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank | ||||||||||
| Total | fill in the blank | $20,000 | $139,040 | $96,000 | fill in the blank | fill in the blank | fill in the blank | ||||||||||
a. Materials Requisitions fill in the blank
b. Work in Process Beginning Balance fill in the blank
c. Direct Materials fill in the blank
d. Direct Labor fill in the blank
e. Factory overhead applied fill in the blank
f. Completed jobs fill in the blank
g. Cost of goods sold fill in the blank
h. Indirect labor fill in the blank
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 |
| Work in Process | $fill in the blank |
| Finished Goods | $fill in the blank |
| Factory Overhead | $fill in the blank |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Outsourcing Dilemma Whats Best For Internal Auditing
Authors: Larry E. Rittenberg, Institute Of Internal Auditors Research Foundation, Lee A. Campbell
1st Edition
0894133845, 978-0894133848
