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 summarized for May:

Materials
May 1	Balance	33,600	May 31	Requisitions	(a)
31	Purchases	134,900

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	116,300

Factory Overhead
May 1	Balance	20,800	May 31	Factory overhead applied	(e)
31	Indirect labor	(h)
31	Indirect materials	17,900
31	Other overhead	70,900

In addition, the following information is available:

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

   Job No.		Style	Quantity		Direct Materials				Direct Labor
   101		AF1	200			$24,200				$15,000
   102		AF3	370			36,380				24,000
   103		AF2	190			14,550				7,000
   104		VY1	280			38,520				27,000
   105		VY2	170			22,290				16,000
   106		AF4	120			7,560				4,000
   		Total	1,330			$143,500				$93,000

2. Factory overhead is applied to each job at a rate of 140% of direct labor cost.
3. The May 1 Work in Process balance consisted of two jobs, as follows:
   

   Job No.	Style	Work in Process, May 1
   101	AF1	$6,000
   102	AF3	14,800
   Total		$20,800

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

   Job No.	Style	Completed in May	Units Sold in May
   101	AF1	X	160
   102	AF3	X	296
   103	AF2		0
   104	VY1	X	235
   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 1

$ 6,000

$ 24,200

$ 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

14,800

36,380

24,000

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

14,550

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

38,520

27,000

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

22,290

16,000

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

7,560

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

$20,800

$143,500

$93,000

$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
Work in Process
Finished Goods
Factory Overhead

Answer 1

1. a. $ 161,400

b. $ 20,800

c. $ 143,500

d. $ 93,000

e. $ 130,200

f. $ 338,990

g. $ 277,036

h. $ 23,300

Job No.	Work in Process, May 1	Direct Materials	Direct Labor	Factory Overhead	Total Cost	Unit Cost	Units Sold	Cost of Goods Sold
101	$ 6,000	$ 24,200	$15,000	$ 21,000	$66,200	$331	160	$52,960
102	14,800	36,380	24,000	33,600	108,780	294	296	87,024
103	0	14,550	7,000	9,800	31,350	-	-	-
104	0	38,520	27,000	37,800	103,320	369	235	86,715
105	0	22,290	16,000	22,400	60,690	357	141	50,337
106	0	7,560	4,000	5,600	17,160	-	-	-
Totals	$ 20,800	$143,500	$93,000	$ 130,200	$387,500			$277,036

Materials
Balance, May 1	33,600	161,400	Requisitions (a)
Purchases	134,900
Balance, May 31	7,100
Work in Process
Balance, May 1 (b)	20,800	338,990	Completed jobs (f)
Materials (c)	143,500
Direct labor (d)	93,000
Factory overhead applied (e)	130,200
Balance, May 31	48,510
Finished Goods
Balance, May 1	0	277,036	Cost of Goods Sold (g)
Completed jobs	338,990 (f)
Balance, May 31	61,954
Wages Payable
May 31		116,300	Wages incurred
Factory Overhead
Balance, May 1	20,800	130,200	Factory overhead applied (e)
Indirect materials	17,900
Indirect labor (h)	23,300
Other overhead	70,900
Balance, May 31	2,700

	Balances, May 31
Materials	$ 7,100
Work in Process	48,510
Finished Goods	61,954
Factory Overhead	2,700 Dr.