Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 36

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 the following jobs in May:

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

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

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