Diagram flow of costs (Learning Objective 1)

Pule produces kitchen cabinets in a three-stage process that includes milling, assem¬ bling, and finishing, in that order. Direct materials are added in the Milling and Finishing departments. Direct labor and overhead are incurred in all three depart¬ ments. The company’s general ledger includes the following accounts:

Outline the flow of costs through the company’s accounts, including a brief descrip¬ tion of each flow. Include a T-account for each account title given.

Transcribed Image Text:

Cost of Goods Sold Manufacturing Wages Work in Process Inventory-Milling Work in Process Inventory-Assembling Work in Process Inventory-Finishing Materials Inventory Finished Goods Inventory Manufacturing Overhead