Question

Sunset Products manufactures skateboards. The following transactions occurred in March. 1. Purchased $22,500 of materials on account. 2. Issued $1,250 of supplies from the materials inventory. 3. Purchased $25,500 of materials on account. 4. Paid for the materials purchased in transaction (1) using cash. 5. Issued $30,500 in direct materials to the production department. 6. Incurred direct labor costs of $27,500, which were credited to Wages Payable. 7. Paid $22,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. 8. Applied overhead on the basis of 110 percent of direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $5,500. The following balances appeared in the accounts of Sunset Products for March. Beginning Ending Materials Inventory $ 9,750 ? Work-in-Process Inventory 17,000 ? Finished Goods Inventory 65,500 $37,000 Cost of Goods Sold 73,500 Required: a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required A Required B

Answer 1

Jarrual Entries 1, 2250 material т To Accounts Payable 22 50 2. 1250 work, in process Treo Material 1250 3. 2500 25se Matinal Т To accounts Payable Accounts payable to lash u. 225oo 22 500 30 500 S. work-in-process To matinals 30500 2250 b. work-in-focess т To wages Payable 2750 factory overhead to 22 JA 22doo To 2000 cash 3050 work-in-process (27509x1104.) TO Applied overbread 302 9. factory overhead S5oo TO Accumulated Defreciation 5soo

12 So от bal, Ltd to Accounts Payable те до 5 Разаku material Inventory cito By work-in Prouss 29 се By work in process 2 соо 30 See factory over head Те cash 22 рро Гоо To Accumulated Depreciation | обър work in process ТУ 3a, La | Торо To Material by finished goods 17 р to Mattrial Добер Т" Jay ayabu 2 тоо To applica avetheed 3.0250 Accounts Payable 20 гоо By Material By Material 22 000 о сми 2 30p 1 СКИ 09 Akcoust (oaku 22 сто By factory overhead |22000

Wages payable By work-in-process 27500 Applied factory overhead By work-in-process 30250 Ally rulated Depreciatibu By factory overhead 5300 cast of goods seed TO 135000 finished goods By Bal, eld 73500 finished goods 655001 By cost of goods seld (135000 To work-lar Process 106500 т To Bal, bed By bal. eld 370RO 106500 finished goods all TO WIP 106 500 135000 COGS To All Anished goods (35OOD