Kaycee, Inc., manufactures brown paper grocery bags. During the month of May, the fol¬

lowing occurred;

a. Materials were purchased on account for $23,175.

b. Materials totaling $19,000 were requisitioned for use in production.

c. Direct labor payroll for the month was $17,850 with an average wage of $8.50 per hour.

d. Actual overhead of $15,500 was incurred and paid.

e. Factory overhead is charged to production at the rate of $7 per direct labor hour.

f. Completed units costing $36,085 were transferred to finished goods.

g. Bags costing $30,000 were sold on account for $36,000.

Beginning balances as of May 1 were:

Required:
1. Prepare the journal entries for the preceding events.
2. Calculate the ending balances of:

a. Materials

b. Work in Process

c. Overhead Control

d. Finished Goods

Transcribed Image Text:

Materials Work in Process Finished Goods $ 5,170 11,200 2,630