Analyzing materials and other transactions LO₃ Nicola Manufacturing Company uses a job order cost system. The following accounts have been taken from the books of the company:

Required:
1. Analyze the accounts and describe in narrative form what transactions took place. (Use the reference letters

a. through

f. in your explanations.)
2. List the supporting documents or forms required to record each transaction involving the receipt or issuance of materials.
3. Determine the ending balances for Materials,Work in Process, and Finished Goods.

Transcribed Image Text:

Materials Bal. Inventory a. Purchases for month 7,000 b. Requisitions for month 19,000 22,000 Work in Process Bal. Inventory 3.600 e. To finished goods 47,500 b. Material Requisitions 19,000 c. Direct Labor 17,000 d. Factory Overhead 12,000 Finished Goods Bal. Inventory 11,650 f. Cost of Goods Sold 55,000 e. Goods Finished 47,500