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ABC Co. recorded the following transactions for the just completed month. The company had no beginning inventories. $135,000 in raw materials were purchased on account.

ABC Co. recorded the following transactions for the just completed month. The company had no beginning inventories.

  1. $135,000 in raw materials were purchased on account.
  2. $112,000 in raw materials were requisitioned for use in production. Of this amount, $98,000 was for direct materials and the remainder was for indirect materials.
  3. Total labor wages of $145,000 were incurred and paid. Of this amount, $132,000 was for direct labor and the remainder was for indirect labor.
  4. Additional manufacturing overhead costs of $225,500 were incurred and paid.
  5. Manufacturing overhead costs of $240,000 were applied to jobs using the companys predetermined overhead rate.
  6. Of the jobs in progress at the end of the month, $350,500 were completed and shipped to customers.
  7. Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:

1. Post the above transactions to T-accounts (only to the T-accounts shown below). Label each entry.

2. Determine the cost of goods sold for the period.

Raw Material

Work in Process

Manufacturing O/H

Finished Goods

Cost of Goods Sold

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