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	37,500	May 31	Requisitions	(a)
31	Purchases	150,600

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	121,300

Factory Overhead
May 1	Balance	21,700	May 31	Factory overhead applied	(e)
31	Indirect labor	(h)
31	Indirect materials	20,000
31	Other overhead	62,500

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	170			$21,030				$13,000
   102		AF3	430			44,180				27,000
   103		AF2	210			17,720				8,000
   104		VY1	300			45,900				30,000
   105		VY2	160			21,500				15,000
   106		AF4	150			9,850				4,000
   		Total	1,420			$160,180				$97,000

2. Factory overhead is applied to each job at a rate of 130% 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	$5,000
   102	AF3	16,700
   Total		$21,700

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	136
   102	AF3	X	344
   103	AF2		0
   104	VY1	X	252
   105	VY2	X	133
   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

x

$ 5,000

$ 21,030

$ 13,000

$x

$x

$x

x

$x

No. 102

x

16,700

44,180

27,000

x

x

x

x

x

No. 103

x

17,720

8,000

x

x

x

x

No. 104

x

45,900

30,000

x

x

x

x

x

No. 105

x

21,500

15,000

x

x

x

x

x

No. 106

x

9,850

4,000

x

x

x

x

Total

x

$21,700

$160,180

$97,000

$x

$x

$x

a. Materials Requisitions $__x_______

b. Work in Process Beginning Balance $_x________

c. Direct Materials $___x________

d. Direct Labor $____x______

e. Factory overhead applied $_____x_______

f. Completed jobs $___x________

g. Cost of goods sold $____x_______

h. Indirect labor $____x_________

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	$x
Work in Process	$x
Finished Goods	$x
Factory Overhead	$x

Wherever there is an "x" theres an amount box for me to fill. Thanks!

Answer 1

Job No	Quantity (A)	May 1 Work in process	Direct materials	Direct labor	Factory overhead 130% of direct labor cost	Total cost (B)	Unit cost (B)/(A)	Unit sold	Cost of goods sold
101	170	$5,000	$21,030	$13,000	$16,900	$55,930	$329	136	$44,744
102	430	16,700	44,180	27,000	35,100	122,980	286	344	98,384
103	210		17,720	8,000	10,400	36,120	172	0	0
104	300		45,900	30,000	39,000	114,900	383	252	96,516
105	160		21,500	15,000	19,500	56,000	350	133	46,550
106	150		9,850	4,000	5,200	19,050	127	0	0
Total	1,420	$21,700	$160,180	$97,000	$126,100	$404,980			$286,194

a. Material requisition = Total Direct material (as calculated above)+ Indirect material

= $160,180 + 20,000 = $180,180

b. Work in process beginning balance = $72,400 (as calculated above)

c. Direct material = $160,180

d. Direct labor = $97,000

e. Factory overhead applied = $126,100

f. Completed jobs = Job no. 101 + Job no. 102 + Job no. 104 + Job no. 105

= $55,930 + 122,980 + 114,900 + 56,000 = $349,810

g. Cost of goods sold = $286,194

h. Indirect labor = Wages incurred - Direct labor

= $121,300 - 97,000 = $24,300

2.

Computation of May 31 balances for each of the following:

Material = Beginning balance + purchases - requisition

= $37,500 + 150,600 - 180,180 = $7,920

Work in process = Job 103 + Job 106

= $36,120 + 19,050 = $55,170

Finished goods = Completed jobs - Cost of goods sold

= $349,810 - 286,194 = $63,616

Factory overhead =( Beginning balance + Indirect labor + indirect materials + other overhead ) - Factory overhead applied

=( $21,700 + 24,300 + 20,000 + 62,500) - 126,100

= $128,500 - 126,100

= $2,400

kindly give a ?. It helps me. Thanks!!