Question

Analyzing Manufacturing Cost Accounts
Summer Boards Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for May:
Materials
May 1 Balance 35,900

31 Purchases 144,200

31 Requisitions (A)

Work in Process
May 1 Balance (B)

31 Materials (C)

31 Direct labor (D)

31 Factory overhead applied (E)

31 Completed jobs (F)

Finished Goods
May 1 Balance 0 31 Completed jobs (F)

31 Cost of goods sold (G)

Wages Payable
May 31 Wages incurred 126,300

Factory Overhead
May 1 Balance 22,300 31 Indirect labor (H)

31 Indirect materials 19,200

31 Other overhead 77,600

31 Factory overhead applied (E)
In addition, the following information is available:
a. Materials and direct labor cost were applied to six jobs in May:
Job No. Style Quantity Direct Materials Direct Labor
No. 0521 SX 220 $24,860 $17,000

No. 0522 SJ 390 38,020 26,000

No. 0523 SK 180 14,700 7,000

No. 0524 T3 320 45,600 31,000

No. 0525 T6 180 22,920 17,000

No. 0526 SX 100 7,300 3,000

Total 1,390 $153,400 $101,000
b. Factory overhead is applied to each job at a rate of 140% of direct labor cost.

c. The May 1 Work in Process balance consisted of two jobs, as follows:
Job No. Style Work in Process, May 1
Job 0521 SX $6,500

Job 0522 SJ 15,800

Total $22,300
d. Customer jobs completed and units sold in May were as follows:
Job No. Style Completed in May Units Sold in May
No. 0521 SX X 176

No. 0522 SJ X 312

No. 0523 SK 0

No. 0524 T3 X 269

No. 0525 T6 X 149

No. 0526 SX 0
1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest cent. If an amount is zero, enter in "0". Enter all amounts as positive numbers.
Job

Anang Maturing Account Summer Boards Company m a ture surfboards in a writy of and styles. The following incomplete ledger accounts ler to reach Hay Balance 3. Factory red aplied 3 Coletedobs H 33 Completed 31 Cost of goods sold Wages Payable et 126,300 Factory Overhead Hey blanc 3. Indret bor 3 Indirects 19,200 31 Other overed Factory when applied (5) : In addition, the following information a. Mars and are abor cost were applied in May Job Style Quantity Direct Director No. 052L 5X No. 0522 3902102025DOD No. 0523 SK 14,200 2,000 No. 0524 3 320 No. 02 6 10 N 052 00 Fredhe 14drec E. The May 1 Rok in re lance constad of two otsas olas Job No. Style Work in Process, May 1 $5,500 0522 5 15,000 d. Customer jobs m ed and its sold in May were as follows Job No. Style Completed in Hay Unita Sold in May No. 05215 Na 522 No. 0523 SK Na 012413 N 525 TE No. 052 SX 1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest cent. If an amount is zero, enter in "o". Enter all amounts as post Quantity May 1 Work in Process Direct Materials Factory Overhead Units Sold Cost of Goods Sold Job No. No. 0521 No. 0522 No. 0523 No. 0524 No. 0525 No. 0526 2. Determine the May 31 balances for each of the inventory accounts and factory overhead Material: Viork in Process: Finished Goods: $ Factory Overheads $

Answer 1

1.

Job No.	Quantity	May 1 Work in Process	Direct Material	Direct labor	Factory Overhead	Total	Cost per unit	Units sold	Cost of Goods Sold
521	220	$            6,500	$         24,860	$       17,000	$   23,800	$       72,160	328	176	$          57,728
522	390	$         15,800	$         38,020	$       26,000	$   36,400	$    116,220	298	312	$          92,976
523	180		$         14,700	$         7,000	$      9,800	$       31,500
524	320		$         45,600	$       31,000	$   43,400	$    120,000	375	269	$      1,00,875
525	180		$         22,920	$       17,000	$   23,800	$       63,720	354	149	$          52,746
526	100		$            7,300	$         3,000	$      4,200	$       14,500
Totals		$         22,300	$       153,400	$     101,000	$ 141,400	$    418,100			$      3,04,325

B. Work in Process = $22300A. Material Requisitions = $153400+19200 = $172600

C. Direct Material = $153400

D. Direct labor = $101000

E. Overhead applied = $141400

F. Completed Jobs = $72160+116220+120000+63720 = $372100

G. Cost of Goods Sold = 176 x $328 + 312 x $298 + 269 x $375 + 149 x $354 = $304325

H. Indirect Labor = $126300 - 101000 = $25300

2. Ending Balances
Raw Material = $35900+144200-153400 = $26700
Work in Process = $31500+14500 = $46000
Finished Goods = $372100-304325 = $67775
Factory Overhead = $22300+19200+25300+77600-141400 = $3000