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 | 31,400 | May 31 | Requisitions | (a) |
May 31 | Purchases | 126,100 |
Work in Process | |||||
---|---|---|---|---|---|
May 1 | Balance | (b) | May 31 | Completed jobs | (f) |
May 31 | Materials | (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) |
Wages Payable | |||||
---|---|---|---|---|---|
May 31 | Wages incurred | 125,000 | |||
Factory Overhead | |||||
---|---|---|---|---|---|
May 1 | Balance | 21,700 | May 31 | Factory overhead applied | (e) |
May 31 | Indirect labor | (h) | |||
May 31 | Indirect materials | 16,800 | |||
May 31 | Other overhead | 100,400 |
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 | 180 | $17,800 | $13,000 | ||||||||
102 | AF3 | 420 | 35,420 | 27,000 | ||||||||
103 | AF2 | 180 | 13,300 | 7,000 | ||||||||
104 | VY1 | 320 | 39,040 | 32,000 | ||||||||
105 | VY2 | 180 | 20,060 | 17,000 | ||||||||
106 | AF4 | 150 | 8,500 | 4,000 | ||||||||
Total | 1,430 | $134,120 | $100,000 |
Factory overhead is applied to each job at a rate of 160% 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 | $5,100 | |||
102 | AF3 | 16,600 | |||
Total | $21,700 |
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 | 336 | |
103 | AF2 | 0 | ||
104 | VY1 | X | 269 | |
105 | VY2 | X | 149 | |
106 | AF4 | 0 |
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 | $ 5,100 | $ 17,800 | $ 13,000 | $ | $ | $ | $ | ||||||||||
No. 102 | 16,600 | 35,420 | 27,000 | ||||||||||||||
No. 103 | 13,300 | 7,000 | |||||||||||||||
No. 104 | 39,040 | 32,000 | |||||||||||||||
No. 105 | 20,060 | 17,000 | |||||||||||||||
No. 106 | 8,500 | 4,000 | |||||||||||||||
Total | $21,700 | 134,120 | 100,000 | $ | $ | $ |
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: | $ |
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