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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	35,200	July 31	Requisitions	(A)
July 31	Purchases	141,300

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	131,300

Factory Overhead
July 1	Balance	23,100	July 31	Factory overhead applied	(E)
July 31	Indirect labor	(H)
July 31	Indirect materials	18,800
July 31	Other overhead	92,900

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	200			$21,300				$15,000
No. 22		X-20	430			39,550				28,000
No. 23		X-50	190			13,630				8,000
No. 24		T-20	310			43,690				32,000
No. 25		X-40	190			24,380				17,000
No. 26		T-10	150			7,750				5,000
		Total	1,470			$150,300				$105,000

Factory overhead is applied to each job at a rate of 150% 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	$5,800
Job 22	X-20	17,300
Total		$23,100

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	160
No. 22	X-20	X	344
No. 23	X-50		0
No. 24	T-20	X	260
No. 25	X-40	X	158
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.

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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