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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	35,900	July 31	Requisitions	(A)
July 31	Purchases	144,300

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	118,800

Factory Overhead
July 1	Balance	21,300	July 31	Factory overhead applied	(E)
July 31	Indirect labor	(H)
July 31	Indirect materials	19,200
July 31	Other overhead	61,600

In addition, the following information is available:

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

Job No.		Style	Quantity		Direct Materials				Direct Labor
No. 21		X-10	170			$21,560				$12,000
No. 22		X-20	420			42,040				27,000
No. 23		X-50	180			13,780				7,000
No. 24		T-20	280			42,560				28,000
No. 25		X-40	170			23,040				16,000
No. 26		T-10	150			10,550				5,000
		Total	1,370			$153,530				$95,000

Factory overhead is applied to each job at a rate of 130% of direct labor cost.

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	$4,900
Job 22	X-20	16,400
Total		$21,300

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	336
No. 23	X-50		0
No. 24	T-20	X	235
No. 25	X-40	X	141
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		$ 4,900		$ 21,560		$ 12,000		$		$		$				$
No. 22		16,400		42,040		27,000
No. 23				13,780		7,000
No. 24				42,560		28,000
No. 25				23,040		16,000
No. 26				10,550		5,000
Total		$21,300		153,530		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 $

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:	$

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