Question

The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm:

Purchased $21,500 of materials on account.

Issued $1,350 of supplies from the materials inventory.

Purchased $12,300 of materials on account.

Paid for the materials purchased in transaction (1) using cash.

Issued $14,700 in direct materials to the production department.

Incurred direct labor costs of $25,500, which were credited to Wages Payable.

Paid $22,300 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

Applied overhead on the basis of 120 percent of $25,500 direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $11,100.

The following balances appeared in the accounts of Steve’s Cabinets for April:
  

	Beginning			Ending
Materials Inventory	$	31,290			?
Work-in-Process Inventory		7,700			?
Finished Goods Inventory		34,300		$	29,190
Cost of Goods Sold					54,330
1 Materials inventory 21,500 Accounts payable 21,500 2 2 Manufacturing overhead control 1,350 Materials inventory 1,350 3 3 Materials inventory 12,300 Accounts payable 12,300 4 4 Accounts payable 21,500 Cash 21,500 5 5 Work-in-process—direct materials 14,700 Materials inventory 14,700 6 6 Work-in-process—direct labor 25,500 Wages payable 25,500 7 7 Manufacturing overhead control 22,300 Cash 22,300 8 8 Work-in-process—overhead 30,600 Applied manufacturing overhead 30,600 9 9 Manufacturing overhead control 11,100 Accumulated depreciation—property, plant and equipment 11,100 Required: Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Work-In-Process Inventory Beg. bal Beg. bal Finished Goods End.bal End. bal 0 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal Beg. bal End. bal 0 End.ba Accounts Payable Cash Beg. bal Beg. bal End. bal End. bal 0 Accumulated Depreciation-Property, Plant, and Equipment Wages Payable Beg. bal Beg. bal End. bal End. bal 0 Finished Goods Inventory Cost of Goods Sold Beg. bal Goods completed End. bal Beg. bal Finished Goods Inventory End. bal Transfer to Cost of Goods Sold 0

Answer 1

Journal entires POST REF DATE DESCRIPTION DEBITSCREDIT$ 1 Material Inventor 21500 Account Payable 21500 2 Manufacturing overhead control Material inventor 1350 1350 3 Material Inventor 12300 Account Payable 12300 4 Account Payable Cash 21500 21500 5 Work in process Invento Material inventor 14700 14700 6 Work in process Invento 100000 Wages Payable 100000 71 Manufacturing overhead control 22300 Cash 22300 8 Applied manufacturing overheads 31875 Work in process Inventor 31875 9 Manufacturing overhead control 11100 Accumulated dep Plant and equipment 11100

Material invento Work in- process Invento Beg. Bal Beg. Bal 31290 21500 12300 7700 1350 14700 5 14700 6 100000 154275 Finished goods 831875 End. Bal 49040 End. Bal 154275 Manufacturing overhead control lied manufacuring overhead Beg. Bal Beg. Bal 22300 11100 1350 31875 End. Bal 34750 End. Bal 31875 Account payable Cash Beg. Bal Beg. Bal 21500 22300 21500 21500 12300 End. Bal 12300 End. Bal 43800

Wages Payable Accumulated depreciation Property Plant and Eqipment Beg. Bal Beg. Bal 100000 11100 End. Bal 100000 End. Bal 11100 Finished goods inventory Cost of Goods sold Beg. Bal 34300 Beg. Bal work in process 154275 159385 Transfer to cost of goods sold Finished goods inventory159385 End. Bal 29190 End. Bal 54330