Question
1. The following transactions occurred in April at Steves Cabinets, a custom cabinet firm: Purchased $19,500 of materials on account. Issued $1,150 of supplies from
1. The following transactions occurred in April at Steves Cabinets, a custom cabinet firm:
Purchased $19,500 of materials on account.
Issued $1,150 of supplies from the materials inventory.
Purchased $11,900 of materials on account.
Paid for the materials purchased in transaction (1) using cash.
Issued $14,300 in direct materials to the production department.
Incurred direct labor costs of $23,500, which were credited to Wages Payable.
Paid $21,900 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
Applied overhead on the basis of 130 percent of $23,500 direct labor costs.
Recognized depreciation on manufacturing property, plant, and equipment of $10,700.
The following balances appeared in the accounts of Steves Cabinets for April:
Beginning | Ending | |||||
Materials Inventory | $ | 30,690 | ? | |||
Work-in-Process Inventory | 7,300 | ? | ||||
Finished Goods Inventory | 33,900 | $ | 28,990 | |||
Cost of Goods Sold | 53,730 | |||||
Required:
a. Prepare journal entries to record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
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