Chapter 2, Problem 4PB

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:

1. A. Materials and direct labor were applied to six jobs in May:

1. B. Factory overhead is applied to each job at a rate of 50% of direct labor cost.
2. C. The May 1 Work in Process balance consisted of two jobs, as follows:

1. D. Customer jobs completed and units sold in May were as follows:

Instructions

1. 1. Determine the missing amounts associated with each letter. Provide supporting computations by completing a table with the following headings:

1. 2. Determine the May 31 balances for each of the inventory accounts and factory overhead.