Question

Porter Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The following are Porter's transactions during September 2016

Sept.	5	Received material costing $6,000 from a supplier. The material was purchased on account.
	9	Requisitioned $14,000 of material for use in the factory, consisting of $11,200 of direct material and $2,800 of indirect material.
	11	Recorded the factory payroll: $28,000 of direct labor and $4,000 of indirect labor.
	17	Incurred various overhead costs totaling $30,000. (Credit Accounts Payable.)
	20	Applied $42,000 of manufacturing overhead to the products being manufactured.
	23	Completed product costing $34,000 and moved it to the warehouse.
	26	Sold goods with a product cost of $8,000 on account for $12,000.

a. and b. Record the transactions listed above in general journal form, post relevant portions to the four T‑accounts set-up below, and balance the four accounts.

General Journal
Date	Description	Debit	Credit
Sept. 5	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
Sept. 9	Work in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
Sept. 11	Work in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
Sept. 17	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
Sept. 20	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
Sept. 23	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
Sept. 26	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	To record cost of goods sold.
Sept. 26	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	AnswerAccounts payableAccounts receivableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventorySalesWages payableWork in process inventory	Answer	Answer
	To record sale of product.

For T-accounts, enter transactions in order of occurrence using the first available answer box in the appropriate debit or credit column.

Materials Inventory
Bal.	16,000	Answer
	Answer	Answer
Bal.	Answer	Answer

Work in Process Inventory
Bal.	52,000	Answer
	Answer	Answer
	Answer	Answer
	Answer	Answer
Bal.	Answer	Answer

Finished Goods Inventory
Bal.	22,000	Answer
	Answer	Answer
Bal.	Answer	Answer

Cost of Goods Sold
Bal.	64,000	Answer
	Answer	Answer
Bal.	Answer	Answer

Answer 1

Answer (a):

General Journal Date Description Sept. 5 Materials inventory Accounts payable Sept. 9 Work in process inventory Manufacturing overhead Materials inventory Sept. 11 Work in process inventory Manufacturing overhead Wages payable Sept. 17 Manufacturing overhead Accounts payable Sept. 20 Work in process inventory Manufacturing overhead Sept. 23 Finished goods inventory Work in process inventory Sept. 26 Cost of goods sold Finished goods inventory To record cost of goods sold. Sept. 26 Accounts receivable Sales To record sale of product. Debit Credit $6,000 $6,000 $11.2001 $2,800 $14,000 $28.000 $4,000 $32,000 $30,000 $30,000 $42,000 $42,000 $34,000 $34,000 $8,000 $8,000 $12,000 $12,000

Answer (b):

Bal. Sept. 5 Bal. S11 200 Bal. Sept. 9 Sept. 11 Sept. 20 Bal. Materials Inventory $16,000 $14,000 Sept. 9 $6,000 $8,000 Work in Process Inventory $52,000 $34,000 Sept. 23 $11,200 $28,000 $42,000 $99,200 Finished Goods Inventory $22,000 $8,000 Sept. 26 $34.000 $48,000 Cost of Goods Sold $64.000 $8,000 $72,000 Bal. Sept. 23 Bal. Bal. Sept. 26 Bal.