Big Sur Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete
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Question:
Big Sur Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions for May:
Date | Line Item Description | Amount |
---|---|---|
May 1 | Balance | 18,000 |
May 31 | Purchases | 50,000 |
May 31 | Requisitions | (A) |
Date | Line Item Description | Amount |
---|---|---|
May 1 | Balance | (B) |
May 31 | Direct materials | (C) |
May 31 | Direct labor | (D) |
May 31 | Factory overhead applied | (E) |
May 31 | Completed jobs | (F) |
Date | Line Item Description | Amount |
---|---|---|
May 1 | Balance | 0 |
May 31 | Completed jobs | (F) |
May 31 | Cost of goods sold | (G) |
Date | Line Item Description | Amount |
---|---|---|
May 31 | Wages incurred | 105,000 |
Date | Line Item Description | Amount |
---|---|---|
May 1 | Balance | (3,000) |
May 31 | Indirect labor | (H) |
May 31 | Indirect materials | 3,500 |
May 31 | Other overhead | 101,900 |
May 31 | Factory overhead applied | (E) |
In addition, the following information is available:
- Materials and direct labor cost were applied to six jobs in May:
Job No. Style Quantity Direct Materials Direct Labor No. 0521 SX 100 $5,500 $15,000 No. 0522 SJ 200 8,000 26,000 No. 0523 SK 100 3,500 8,000 No. 0524 T3 125 7,000 25,000 No. 0525 T6 100 5,500 15,000 No. 0526 SX 70 2,100 4,500 Total 695 $31,600 $93,500 - Factory overhead is applied to each job at a rate of 110% of direct labor cost.
- The May 1 Work in Process balance consisted of two jobs, as follows:
Job No. Style Work in Process, May 1 Job 0521 SX $1,500 Job 0522 SJ 5,000 Total $6,500 - Customer jobs completed and units sold in May were as follows:
Job No. Style Completed in May Units Sold in May No. 0521 SX X 80 No. 0522 SJ X 160 No. 0523 SK 0 No. 0524 T3 X 105 No. 0525 T6 X 75 No. 0526 SX 0
Instructions:
1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest cent. If an amount is zero, enter in "0". Enter all amounts as positive numbers.
Provide supporting calculations:
Job No. | Quantity | May 1 Work in Process | Direct Materials | Direct Labor | Factory Overhead | Total Cost | Unit Cost | Units Sold | Cost of Goods Sold |
---|---|---|---|---|---|---|---|---|---|
No. 0521 | $ | $ | $ | $ | $ | $ | $ | ||
No. 0522 | |||||||||
No. 0523 | |||||||||
No. 0524 | |||||||||
No. 0525 | |||||||||
No. 0526 | |||||||||
Total | $ | $ | $ | $ | $ | $ |
Line Item Description | Amount |
---|---|
A. | $ |
B. | $ |
C. | $ |
D. | $ |
E. | $ |
F. | $ |
G. | $ |
H. | $ |
2. Determine the May 31 balances for each of the inventory accounts and factory overhead.
Line Item Description | Amount |
---|---|
Materials | $ |
Work in process | $ |
Finished goods | $ |
Factory overhead | $ |
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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