Question

1. 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	105,600	May 31	Requisitions	(a)
   31	Purchases	500,000

   Work in Process
   May 1	Balance	(b)	May 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	396,000

   Factory Overhead
   May 1	Balance	26,400	May 31	Factory overhead applied	(e)
   31	Indirect labor	(h)
   31	Indirect materials	15,400
   31	Other overhead	122,500

   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	330			$ 82,500				$ 59,400
      102		AF3	380			105,400				72,600
      103		AF2	500			132,000				110,000
      104		VY1	400			66,000				39,600
      105		VY2	660			118,800				66,000
      106		AF4	330			66,000				30,800
      		Total	2,600			$570,700				$378,400

   2. Factory overhead is applied to each job at a rate of 50% 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	$26,400
      102	AF3	46,000
      Total		$72,400

   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	264
      102	AF3	X	360
      103	AF2		0
      104	VY1	X	384
      105	VY2	X	530
      106	AF4		0

   Required:

   1. Determine the missing amounts associated with each letter by completing the table below. If required, round your unit cost to two decimal places. If an answer is zero, enter in "0". Enter amounts as positive numbers.

   Job No.	Style	Quan- tity		May 1 Work in Process		Direct Materials			Direct Labor		Factory Overhead		Total Cost		Unit Cost		Units Sold		Cost of Goods Sold
   No. 101	AF1	330		$		$82,500			$59,400		$		$		$				$
   No. 102	AF3	380				105,400			72,600
   No. 103	AF2	500				132,000			110,000
   No. 104	VY1	400				66,000			39,600
   No. 105	VY2	660				118,800			66,000
   No. 106	AF4	330				66,000			30,800
   Total		2,600		$		$570,700			$378,400		$		$						$

   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. Enter all amounts as positive numbers.

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

Answer 1

Jxc L C A D E Hi K L solution 1 (50% of Dir.labor cost Requirement 1: 3 job no. style quantity May 1 WIP Dir.material Dir.labor Fac. overhead Total cost Unit cost Units sold COGS 59400 158400 4 No.101 AF1 330 26400 82500 29700 198000 600 264 No.102 AF3 380 46000 105400 72600 36300 260300 685 360 246600 No.103 AF2 500 132000 110000 55000 297000 0 6 No.104 VY1 400 66000 39600 19800 125400 313.5 384 120384 7 No.105 VY2 660 118800 66000 33000 217800 330 530 174900 C No 106 AF4 330 66000 30800 15400 112200 0 Total 378400 2600 72400 570700 189200 1E+06 700284 1C 11 a. Material Requitions: 12 Direct material (from above table) indirect material (from factory overhead T account ) 13 570700415400 14 586100 15 16 b. Work in process beginning balance: 72400(from above table) 17 18 c. Direct material: 19 570700(from above table) 20 d. direct labor: 21 378400(from above table) 22 e. Factory overhead applied: 189200(from above table) f. completed jobs: 198000 260300+125400+217800(from above table) 23 24 25 26 801500 27 g. cost od good sold: 700284(from above table) 28 29 h. Indirect labor: 30 Wages incurred (from wages payable T account) less direct labor (from above table) 31 396000-378400 32 33 17600 34 Requirement 2: 35 36 job balances: Materials 1056004500000-586100 37 38 35 work in process: job no 103 job no.106 40 297000 112200 41 409200 42 Finished goods: 43 44 completed JOBS-COGS 801500-700284 45 101216 46 47 Factory overhead: 48 26400+17600+15400+122500-189200(From Factory T account ( 49 7300 overapplied 50 51 52