Concept explainers
Analyzing
Clapton company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May:
In addition, the following information is available:
A. Materials and direct labor were applied to six 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 |
B. Factory overhead is applied to each job at a rate of 50% 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 | $26,400 |
102 | AF3 | 46,000 |
Total | $72,400 |
D. Customer jobs completed and units sold in May were as follows
Job No. | Style | Completed in May | Units Soldin May |
101 | AF1 | X | 264 |
102 | AF3 | X | 360 |
103 | AF2 | 0 | |
104 | VY1 | X | 384 |
105 | VY2 | X | 530 |
106 | AF4 | 0 |
Instructions
1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:
JobNo. | Quantity | May 1 Work in Process | Direct Materials | Direct Labor | Factory Overhead | Total Cost | Unit Cost | Units Sold | Cost of Goods Sold |
2. Determine the May 31 balances for each of the inventory accounts and factory overhead.
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