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 | 29,500 | May 31 | Requisitions | (a) |
| 31 | Purchases | 118,500 | |||
| 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 | 121,300 | |||
| Factory Overhead | |||||
|---|---|---|---|---|---|
| May 1 | Balance | 21,500 | May 31 | Factory overhead applied | (e) |
| 31 | Indirect labor | (h) | |||
| 31 | Indirect materials | 15,800 | |||
| 31 | Other overhead | 107,400 | |||
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 220 $20,540 $17,000 102 AF3 380 30,120 24,000 103 AF2 230 16,410 9,000 104 VY1 260 29,380 26,000 105 VY2 190 21,360 17,000 106 AF4 140 8,240 4,000 Total 1,420 $126,050 $97,000 - Factory overhead is applied to each job at a rate of 170% 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 $6,600 102 AF3 14,900 Total $21,500 - Customer jobs completed and units sold in May were as follows:
Job No. Style Completed in May Units Sold in May 101 AF1 X 176 102 AF3 X 304 103 AF2 0 104 VY1 X 218 105 VY2 X 158 106 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 | / | $ 6,600 | $ 20,540 | $ 17,000 | $? | $? | $? | ? | $? | ||||||||
| No. 102 | ? | 14,900 | 30,120 | 24,000 | ? | ? | ? | ? | ? | ||||||||
| No. 103 | ? | 16,410 | 9,000 | ? | ? | ? | ? | ? | |||||||||
| No. 104 | ? | 29,380 | 26,000 | ? | ? | ? | ? | ? | |||||||||
| No. 105 | ? | 21,360 | 17,000 | ? | ? | ? | ? | ? | |||||||||
| No. 106 | ? | 8,240 | 4,000 | ? | ? | ? | ? | ||||||||||
| Total | ? | $21,500 | $126,050 | $97,000 | $? | $? | $? | ||||||||||
a. Materials Requisitions $ ?
b. Work in Process Beginning Balance $ ?
c. Direct Materials $ ?
d. Direct Labor $ ?
e. Factory overhead applied $?
f. Completed jobs $?
g. Cost of goods sold $ ?
h. Indirect labor $ ?
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 | $ ? |
| Work in Process | $ ? |
| Finished Goods | $ ? |
| Factory Overhead | $ ? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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