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Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January: Purchased $ 7
Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January:
Purchased $ of materials.
Paid $ cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.
Issued $ of supplies from the materials inventory.
Issued $ in direct materials to the production department.
Incurred direct labor costs of $ which were credited to Wages Payable.
Paid for the materials purchased in transaction
Incurred $ in indirect labor costs, which were credited to Wages Payable.
Applied overhead on the basis of percent of direct labor costs.
Recognized depreciation on manufacturing property, plant, and equipment of $
Returned $ of the materials in transaction to inventory.
Paid the for the wages incurred in transaction
The following balances appeared in the accounts of Ervin Equipment for January:
Beginning Ending
Materials Inventory $
WorkinProcess Inventory
Finished Goods Inventory $
Cost of Goods Sold
Required:
Prepare journal entries to record the transactions.
Prepare Taccounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
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