Kaycee, Inc., manufactures brown paper grocery bags. During the month of May, the following occurred:

a. Purchased materials on account for $23,175.

b. Requisitioned materials totaling $19,000 for use in production.

c. Incurred direct labor payroll for the month of $17,850, with an average wage of

$8.50 per hour.

d. Incurred and paid actual overhead of $15,500.

e. Charged manufacturing overhead to production at the rate of $7 per direct labor hour.

f. Transferred completed units costing $36,085 to finished goods.

g. Sold bags costing $30,000 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 Inventory

b. Work-in-Process Inventory

c. Overhead Control

d. Finished Goods Inventory

Transcribed Image Text:

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