Chapter 17, Problem 17.4BPR

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:

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.