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 32,500 May 31 Requisitions (a) 31 Purchases 130,500       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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 32,500 May 31 Requisitions (a)
31 Purchases 130,500      



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 118,800
           



Factory Overhead
May 1 Balance 21,900 May 31 Factory overhead applied (e)
31 Indirect labor (h)      
31 Indirect materials 17,400      
31 Other overhead 82,600      

 

In addition, the following information is available:

a. Materials and direct labor were applied to the following jobs in May:

Job No.   Style Quantity Direct Materials Direct Labor
101   AF1 230     $26,140       $17,000    
102   AF3 380     36,240       24,000    
103   AF2 200     15,400       8,000    
104   VY1 260     35,460       27,000    
105   VY2 150     17,950       14,000    
106   AF4 140     7,660       5,000    
    Total 1,360     $138,850       $95,000    


b. Factory overhead is applied to each job at a rate of 150% 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
101 AF1 $6,800      
102 AF3 15,100      
Total   $21,900      


d. Customer jobs completed and units sold in May were as follows:

Job No. Style Completed in
May
Units Sold
in May
101 AF1 X 184  
102 AF3 X 304  
103 AF2   0  
104 VY1 X 218  
105 VY2 X 125  
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.

 

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
Work in Process
Finished Goods
Factory Overhead
%24
%24
Transcribed Image Text: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 Work in Process Finished Goods Factory Overhead %24 %24
May 1
Work in
Direct
Direct
Factory
Cost of Goods Sold
Job No.
Quantity
Process
Materials
Labor
Overhead
Total Cost
Unit Cost
Units Sold
No. 101
$ 6,800
$ 26,140
$ 17,000
$
No. 102
15,100
36,240
24,000
No. 103
15,400
8,000
No. 104
35,460
27,000
No. 105
17,950
14,000
No. 106
7,660
5,000
Total
$21,900
$138,850
$95,000
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
Transcribed Image Text:May 1 Work in Direct Direct Factory Cost of Goods Sold Job No. Quantity Process Materials Labor Overhead Total Cost Unit Cost Units Sold No. 101 $ 6,800 $ 26,140 $ 17,000 $ No. 102 15,100 36,240 24,000 No. 103 15,400 8,000 No. 104 35,460 27,000 No. 105 17,950 14,000 No. 106 7,660 5,000 Total $21,900 $138,850 $95,000 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
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