Question

ACCT 2302-Fall 2020 Homework: Chapter 17 Homework Score: 0 of 1 pt E17-25 (book/static) 1 7 of 9 (2 complete) Analyze the following T-accounts and describe each lettered transaction. Note that some transactions may be compound entries (Click the icon to view the transactions.) Choose the description that matches each lettered transaction (a) Choose from any drop-down list and then click Check Answer 7 Parts Clear All remaining

Answer 1

Answer:

Letter	Description
a.	Raw material purchased on account.
b.	Issued raw materials including direct and indirect material for production.
c.	Incurred direct labor cost and indirect labor cost for processing raw materials.
d.	Recorded prepaid insurance to manufacturing overhead account
e.	Applied manufacturing overhead to jobs.
f.	Jobs are completed and costs are transferred from work in process invntory to finished goods inventory.
g.	Jobs are sold, and cost in finished goods inventory transferred to cost of goods sold.
h.	Recorded under applied manufacturing overhead by charging it to cost of goods sold.

For a better understanding, read the journal entries

a.	Raw materials inventory
	Accounts payable
b.	Work in process inventory
	Manufacturing overhead
	Raw materials inventory
	(work in process inventory is debited for issuing direct material and manufacturing overhead is debited for issuing indirect material)
c.	Work in process inventory
	Manufacturing overhead
	Wages payable
	(work in process inventory is debited for direct labor cost incurred and manufacturing overhead is debited for indirect labor cost incurred)
d.	Manufacturing overhead
	Prepaid insurance
e.	Work in process inventory
	Manufacturing overhead
f.	Finished goods inventory
	Work in process inventory
g	Cost of goods sold
	Finished goods inventory
h.	Cost of goods sold
	Manufacturing overhead