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Barker Products is a job shop. The following events occurred in September: 1. Purchased $14,900 of materials on account. 2. Issued $16,400 in direct materials
Barker Products is a job shop. The following events occurred in September:
1. Purchased $14,900 of materials on account.
2. Issued $16,400 in direct materials to the production department.
3. Purchased $12,900 of materials on account.
4. Issued $995 of supplies from the materials inventory.
5. Paid for the materials purchased in transaction (1).
6. Paid $21,100 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
7. Incurred direct labor costs of $25,800, which were credited to Wages Payable.
8. Issued $1,395 of supplies from the materials inventory.
9. Applied overhead on the basis of 85 percent of $25.800 direct labor costs.
10. Recognized depreciation on manufacturing property, plant, and equipment of $13,500.
The following balances appeared in the accounts of Barker Products for September:
Materials Inventorv
work-1n-Process
Inventor)
Finished Goods Inventorv
Cost of Goods
Sold
Beginning
31.400
, 290
37.700
Ending
33,300
1,000
Required:
a. Prepare journal entries to record the transactions.
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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