Question

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

Raw materials, beginning balance	$	25,500
Work in process, beginning balance	$	34,800
Finished Goods, beginning balance	$	52,800

Transactions:

(1)	Raw materials purchases	$	78,100
(2)	Raw materials used in production (all direct materials)	$	78,900
(3)	Direct labor	$	54,800
(4)	Manufacturing overhead costs incurred	$	97,500
(5)	Manufacturing overhead applied	$	74,800
(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	$	224,700

Required:

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

Answer 1

Answer
Raw material Inventory
Bal . 1/1	$ 25,500	Work in progress	$ 78,900
Purchase	$ 78,100
	$103,600		$ 78,900
Bal . 1/31	$ 24,700
Work in progress inventory
Bal . 1/1	$ 34,800	Finished goods	$190,000
Direct material	$ 78,900
Direct labor	$ 54,800
Manufacturing overheads	$ 74,800
	$243,300		$190,000
Bal . 1/31	$ 53,300
Finshed goods inventory
Bal . 1/1	$ 52,800	Cost of goods sold	$224,700
Work in progress	$190,000
	$242,800		$224,700
Bal 1/31	$ 18,100
Manufacturing overheads
Actual overheads	$ 97,500	Work in progress	$ 74,800
	$ 97,500		$ 74,800
Bal 1/31	$ 22,700
Cost of goods sold
Finished goods	$224,700
Unapplied overheads	$ 22,700
Total	$247,400