Question

1. Analyzing Manufacturing Cost Accounts

   Big Wave Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for July:

   Materials
   July 1	Balance	29,000	July 31	Requisitions	(A)
   July 31	Purchases	116,600

   Work in Process
   July 1	Balance	(B)	July 31	Completed jobs	(F)
   July 31	Materials	(C)
   July 31	Direct labor	(D)
   July 31	Factory overhead applied	(E)

   Finished Goods
   July 1	Balance	0	July 31	Cost of goods sold	(G)
   July 31	Completed jobs	(F)

   Wages Payable
   			July 31	Wages incurred	117,500

   Factory Overhead
   July 1	Balance	20,000	July 31	Factory overhead applied	(E)
   July 31	Indirect labor	(H)
   July 31	Indirect materials	15,500
   July 31	Other overhead	95,100

   In addition, the following information is available:

   1. Materials and direct labor were applied to six jobs in July:

      Job No.		Style	Quantity		Direct Materials				Direct Labor
      No. 21		X-10	170			$16,280				$13,000
      No. 22		X-20	370			33,230				24,000
      No. 23		X-50	170			10,530				7,000
      No. 24		T-20	280			36,880				29,000
      No. 25		X-40	180			20,240				17,000
      No. 26		T-10	130			6,890				4,000
      		Total	1,300			$124,050				$94,000

   2. Factory overhead is applied to each job at a rate of 160% of direct labor cost.
   3. The July 1 Work in Process balance consisted of two jobs, as follows:

      Job No.	Style	Work in Process, July 1
      Job 21	X-10	$5,000
      Job 22	X-20	15,000
      Total		$20,000

   4. Customer jobs completed and units sold in July were as follows:

      Job No.	Style	Completed in July	Units Sold in July
      No. 21	X-10	X	136
      No. 22	X-20	X	296
      No. 23	X-50		0
      No. 24	T-20	X	235
      No. 25	X-40	X	149
      No. 26	T-10		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	July 1 Work in Process		Direct Materials		Direct Labor		Factory Overhead		Total Cost		Unit Cost		Units Sold	Cost of Goods Sold
   No. 21		$ 5,000		$ 16,280		$ 13,000		$		$		$				$
   No. 22		15,000		33,230		24,000
   No. 23				10,530		7,000
   No. 24				36,880		29,000
   No. 25				20,240		17,000
   No. 26				6,890		4,000
   Total		$20,000		124,050		94,000		$		$						$

   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 July 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:	$

Check My Work3 more Check My Work uses remaining.

Answer 1

(A)	(B)	(C )	(D)	(E )	(F )=(B)+(C )+(D)+(E )	(G )=(F)/(B)	(H)	(G )*(H)
Quantity	July 1 , WIP	Direct Material	Direct Labor	Factory Overhead	Total Cost	Unit Cost	Unit Sold	Cost of goods sold
170	$          5,000.00	$          16,280.00	$    13,000.00	$              20,800.00	$                   55,080.00	$     324.00	136	$                 44,064.00
370	$       15,000.00	$          33,230.00	$    24,000.00	$              38,400.00	$               1,10,630.00	$     299.00	296	$                 88,504.00
170		$          10,530.00	$      7,000.00	$              11,200.00	$                   28,730.00	$     169.00	0	$                                -
280		$          36,880.00	$    29,000.00	$              46,400.00	$               1,12,280.00	$     401.00	235	$                 94,235.00
180		$          20,240.00	$    17,000.00	$              27,200.00	$                   64,440.00	$     358.00	149	$                 53,342.00
130		$             6,890.00	$      4,000.00	$                6,400.00	$                   17,290.00	$     133.00	0	$                                -
1300	$       20,000.00	$       1,24,050.00	$    94,000.00	$          1,50,400.00	$               3,88,450.00	$     298.81	816	$                   2,43,827
Material Requisitions
Direct Material	$    1,24,050.00
Indirect Material	$       15,500.00
Material Requisitions	$    1,39,550.00
WIP Beginning balance	$       20,000.00
Direct Materials	$    1,24,050.00
Direct Labor	$       94,000.00
Factory ovrhead applied	$    1,50,400.00
Completed Jobs($55080+$110630+$112280+$64440)	$    3,42,430.00
Cost of goods sold	$    2,43,827.08
Indirect Labor=(Wages incurred-Direct Labor)=($117500-$94000)	$       23,500.00
Balance on July 31st on Inventory accounts and factory overhead account
Material(Beginning Material+Purchases-Material Requisitoned)=($29000+$116600-$139550)	$          6,050.00
WIP=($28730+$17290) related to Job 23 and Job 25	$       46,020.00
Finished Goods=(Completed Job-Cost of goods sold)=($342430-$243827)	$       98,602.92
Factory Overhead=(Balance+Indirect Material+Indirect labor+Other overheads-Factory overhead applied)=($20000+$23500+$15500+$95100-$150400)	$          3,700.00