Question

i just need part B please and thank you

Exercise 7-24 (Algo) Assigning Costs to Jobs (LO 7-1, 2) Forest Components makes aircraft parts. The following transactions occurred in July 2.5 points 1 Purchased $16,960 of materials on account 2. Issued $16,750 in direct materials to the production department 3. Issued $1,330 of supplies from the materials Inventory 4. Pald for the materials purchased in transaction (1) using cash. 5. Returned $2,130 of the materials issued to production in (2) to the materials Inventory 6. Direct labor employees earned $31700, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17.200 on account 8. Recognized depreciation on manufacturing plant of $35,100. 9. Appiled manufacturing overhead for the month. References Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual predetermined rate. At the beginning of the year, management estimated that direct labor costs for th at would be 5435.000. Estimated overhead for the was $400,200. The following balances appeared in the inventory accounts of Forest Component for July Materiala Inventory Work-in-Process Inventory Pinished Goods Inventory Cost of Goods Sold Beginning to the 7 $12,520 7 10,560 32,750 7.010 2 74,400 Required: a. Prepare Journal entries to record these transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials inventory through cost of Genes Sold

Answer 1

Computation of Manufacturing OH application rate $ (a) Estimated OH for the year (b) Estimated Direct labor costs for the year (c) Annual Pre-Determined OH rate (a/b) 4,00,200 4,35,000 92% Dr Date Jul-01 Particulars Balance b/d Accounts Payable Work-in-Process Inventory Materials Inventory in $ Date 11,510.00 16,960.00 2,130.00 Jul-31 30,600.00 Particulars Work-in-Process Inventory Manufacturing OH control in $ 16,750.00 1,330.00 Balance c/d Total 12,520.00 30,600.00 Total Dr Date Particulars Jul-01 Balance b/d Materials Inventory Wages control Applied Manufacturing OH Particulars Materials Inventory Finished Goods Inventory in $ 2,130.00 78,660.00 Work-in-Process Inventory in $ Date 13,736.00 16,750.00 31,700.00 29,164.00 Jul-31 91,350.00 Balance c/d Total 10,560.00 91,350.00 Total Dr CS Date Particulars Materials Inventory Accounts Payable Accumulated Depreciation- PPE in $ 29,164.00 Manufacturing OH control in $ Date 1,330.00 17,200.00 35,100.00 Jul-31 53,630.00 Particulars Applied Manufacturing OH (31700*92%) Balance c/d Total 24,466.00 53,630.00 Total

Dr Date Particulars Jul-31 Manufacturing OH control Applied Manufacturing OH in $ Date 29,164.00 Jul-31 Particulars Work-in-Process Inventory in $ 29,164.00 Total 29,164.00 Total 29,164.00 Date Particulars Accounts Payable in $ Date 16,960.00 Jul-01 in $ Cash Particulars Balance b/d Materials Inventory Manufacturing OH control 16,960.00 17,200.00 Jul-31 Balance c/d Total 17,200.00 34,160.00 Total 34,160.00 Dr Cash in $ Date in s Date Jul-01 Particulars Balance b/d Particulars Accounts Payable Wages control 16,960.00 31,700.00 Total Total Date Particulars in $ Accumulated Depreciation - Property, plant and Equipment in $ Date Particulars Jul-01 Balance b/d Manufacturing OH control 35,100.00 Jul-31 Balance c/d Total Total

Dr Date Jul-01 Particulars Balance b/d Work-in-progress inventory Particulars Cost of goods sold in $ 74,400.00 Finished goods Inventory in $ Date 2,750.00 78,660.00 Jul-31 81,410.00 Balance c/d Total 7,010.00 81,410.00 Total Date Particulars Finished Goods Inventory Cost of goods sold in $ Date 74,400.00 Jul-31 Particulars Costing Profit and Loss in $ 74,400.00 Total 74,400.00 Total 74,400.00