Question

Eppich Corporation has provided the following data for the most recent month:

Raw materials, beginning balance	$	19,000
Work in process, beginning balance	$	32,200
Finished Goods, beginning balance	$	50,200

Transactions:

(1)	Raw materials purchases	$	79,400
(2)	Raw materials used in production (all direct materials)	$	77,600
(3)	Direct labor	$	52,200
(4)	Manufacturing overhead costs incurred	$	91,000
(5)	Manufacturing overhead applied	$	72,200
(6)	Cost of units completed and transferred from Work in Process to Finished Goods	$	190,000
(7)	Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold		?
(8)	Finished goods are sold	$	220,800

Required:

Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.

Raw Materials Work in Process Beg. Bal. Beg. Bal. End. Bal. End. Bal. Finished Goods Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. End. Bal. Cost of Goods Sold Beg. Bal. End. Bal.

Answer 1

solution Raw Materials Beginning Balance $19,600 Direct Materials Raw Materials purchased $ 79,400 Ending Balance . $20,8001 $77,600 $190.000 . : work in process Beginning Balance $32,0o| Transfer to FG Direct Materials $77,600 Direet Labor . $.52.2001 Manufacturing $72200 Overhead applied Ending Balance $46,200.1 Beginning Balance Transfer from WIP Ending Balance Finished Goods $50,200 cost of goods sold $220,800 $190.000 $ 19,400

Manufacturing overhead Hanufacturing $91,000 Manufacturing overhead Incurred overhead applied $72,200 $ 18,800 Manufacturing overhead under applied Goods sold Cost of + 1,300 {\ranufacturx111 overhead Under applied Cost of goods sold : $220,800 $239,600 l The under applied Manufacturing overhead is ! closed to cost of goods sold is $18,800

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