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 Work in Process May 1 Balance 31 Materials 31 Direct labor 31 Factory overhead applied 31 Completed jobs Finished Goods May 1 Balance 31 Completed jobs 31 Cost of goods sold Wages Payable May 31 Wages incurred 126,300 Factory Overhead May 1 Balance 22,300 31 Indirect labor 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 No. 0522 S) No. 0523 SK No. 0524 13 No. 0525 T6 No. 0526 SX Total 220 390 180 320 180 100 1,390 $24,860 38,020 14,700 45,600 22,920 $17,000 26,000 7,000 31,000 17,000 3,000 $101,000 7.300 $153,400 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 SU 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 No. 0522 SJ 312 No. 0523 SK No. 0524 T3 269 No. 0525 T6 No. 0526 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 "0". Enter all amounts as positive numbers. Job Quantity May 1 Work in Process Direct Materials Direct Labor Factory Overhead Total No. No. 220 $ 6,500 $ 24,600 $ $ 0521 17,000 26,000 390 15,800 38,0201

Answer 1

1.

Job No.	Quantity	May 1 Work in Process	Direct Material	Direct labor	Factory Overhead	Total	Cost per unit
521	220	$            6,500	$         24,860	$       17,000	$   23,800	$       72,160	$               328
522	390	$         15,800	$         38,020	$       26,000	$   36,400	$    116,220	$               298
523	180		$         14,700	$         7,000	$      9,800	$       31,500
524	320		$         45,600	$       31,000	$   43,400	$    120,000	$               375
525	180		$         22,920	$       17,000	$   23,800	$       63,720	$               354
526	100		$            7,300	$         3,000	$      4,200	$       14,500
Totals		$         22,300	$       153,400	$     101,000	$ 141,400	$    418,100

A. Material Requisitions = $153400+19200 = $172600

B. Work in Process = $22300

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