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Exercise 7 . 2 6 ( Algo ) Assigning Costs to Jobs ( LO 7 - 1 ) Elmira Tool and Die makes machine tools

Exercise 7.26(Algo) Assigning Costs to Jobs (LO 7-1)
Elmira Tool and Die makes machine tools to order. The following transactions occurred in October:
Issued $4,700 of supplies from the materials inventory.
Purchased $51,500 of materials.
Issued $47,100 in direct materials to the production department
Paid $45,700 for miscellaneous items for the manufacturing plant. Accounts Payable was credited.
Retumed $9,200 of the materials issued to production in (3) to the materials inventory.
Purchased $21,500 of materials on account.
Paid for the materials purchased in transaction (2) $95,500
Applied manufacturing overhead for the month.
Elmira uses normal costing. It applies overhead on the basis of materials costs using an annual, predetermined rate. At the beginning
of the year, management estimated that materials costs for the year would be $538,000. Estimated overhead for the year was $2,205,800.
$2,205,800.
The following balances appeared in the inventory accounts of Elmira Tool and Die for October.Exercise 7.26(Algo) Assigning Costs to Jobs (LO 7-1)
Elmira Tool and Die makes machine tools to order. The following transactions occurred in October.
Issued 34700 of fupolies from the matenels inventory.
Purchased $51,500 of materials.
Issued $47,100in direct materials to the production deparment
Purctiased $21,500 of materials on decourn.
Recognazed depreciation on manufactuming pient of $95.500.
Prepare journal entries to recond these transactione b. Prepare Taccouns to show the fow of costs during it
Finished Goods Inventory
Required:
a. Prepare journal entries to record these 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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