Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook On Energy Audit And Environment Management

Authors: Y.P. Abbi, Shashank Jain

1st Edition

8179930920, 978-8179930922

Students also viewed these Accounting questions

Question

represent (-6 1/2) in binary

Answered: 1 week ago