Cost accounting Cycle Entries in T Accounts. Dekker-Lopez Company charges its total actual factory over¬ head to Work in Process. Selected account balances for September are as follows: LO8 September 1 September 30 FinishedGoods.

$34,000

$ 30,000 Work in Process.

7,000

?

Materials and Supplies.

20,000 15,000 Accrued Payroll.

13,000 9,000 Accounts Receivable.

54,000 22,000 Accounts Payable.

18,000 6,000 Sales.

500,000 Additional information:

(a) All sales are on account.

(b) The accounts payable account is used for the purchase of materials and supplies only.

(c) Dekker’s markup is 30% of sales.

(d) At the end of September, the work in process account had $2,000 of materials, $6,000 of direct labor, and $3,000 of factory overhead charged to it.

(e) Actual factory overhead costs for September were:

Supplies. $20,000 Indirectlabor. 55,000 Depreciation. 10,000 Insurance. 2,000 Miscellaneous. 13,000

(f)Materials and supplies purchased on account were $65,000.

Required: Using T accounts, determine:

(1) Materials issued to production

(2) Direct labor

(3) Total factory overhead

(4) Cost of goods manufactured

(5) Cost of goods sold

(6) Payment of accounts payable

(7) Collection of accounts receivable

(8) Payment of payroll