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	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:	$

Answer 1

			1-Jul							Cost of
		Quan-	Work in	Direct	Direct	Factory	Total	Unit	Units	Goods
	Job No.	tity	Process	Materials	Labor	Overhead	Cost	Cost	Sold	Sold
	No 101	180	$5,100	$17,800	$13,000	$20,800	$56,700	$315.00	144	$45,360
	No 102	420	16,600	35,420	27,000	$43,200	$122,220	$291.00	336	$97,776
	No 103	180		13,300	7,000	$11,200	$31,500	$175.00	0	$0
	No 104	320		39,040	32,000	$51,200	$122,240	$382.00	269	$102,758
	No 105	180		20,060	17,000	$27,200	$64,260	$357.00	149	$53,193
	No 106	150		8,500	4,000	$6,400	$18,900	$126.00	0	0
	Total	1,430	$21,700	$134,120	$100,000	$160,000	$415,820			$299,087
a	Materials Requisitions	150920
		Materials Applied to production + Indirect Materials
		134120+16800
b	Work In Process Beginning Balance	$21,700
c	Direct Materials	$134,120
d	Direct Labor	$100,000
e	Factory Overhead applied	$160,000
f	Completed Jobs	365420	(56700+122220+122240+64260)
g	Cost of Goods Sold	$299,087
h	Indirect labor	$25,000	(125000-100000)
	Materials	6580	(31400+126100-150920)
	Work In Process	50400	(21700+134120+100000+160000-365420)
	Finished Goods	66333	(365420-299087)
	Factory Overhead	3900	(21700+25000+16800+100400-160000)