Question

Sunset Products manufactures skateboards. The following transactions occurred in March 1. Purchased $30,000 of materials on account. 2. Issued $1,500 of supplies from the materials inventory 3. Purchased $37,500 of materials on account. 4. Paid for the materials purchased in transaction (1) using cash. 5. Issued $45,000 in direct materials to the production department 6. Incurred direct labor costs of $37,500, which were credited to Wages Payable. 7. Paid $42,250 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturin 8. Applied overhead on the basis of 140 percent of direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $7,500. The following balances appeared in the accounts of Sunset Products for March Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning Ending $13,500 24,750 97,500 54,750 120,000

Answer 1

Materials Inventory					Work-in-Process Inventory
Beg. Bal.	13500				Beg. Bal.	24750
1	30000	1500	2		5	45000	77250	Finished goods
3	37500	45000	5		6	37500
					8	52500
End. Bal.	34500
					End. Bal.	82500
Manufacturing Overhead Control					Applied Manufacturing Overhead
Beg. Bal.					Beg. Bal.
2	1500						52500	8
7	42250
9	7500				End. Bal.		52500
End. Bal.	51250
Accounts Payable					Cash
Beg. Bal.					Beg. Bal.
4	30000	30000	1				30000	4
		37500	3				42250	7
End. Bal.		37500			End. Bal.
Wages Payable					Accumulated Depreciation-Property, Plant, and Equipment
Beg. Bal.					Beg. Bal.
		37500	6				7500	9
End. Bal.		37500			End. Bal.		7500
Finished Goods Inventory					Cost of Goods Sold
Beg. Bal.	97500				Beg. Bal.
Goods completed	77250	120000	Transfer to cost of goods sold		Finished goods inventory	120000
End. Bal.	54750				End. Bal.	120000