Exercise 7-26 (Algo) Assigning Costs to Jobs (LO 7-1) Elmira Tool and Die makes machine tools...

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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: 1. Issued $4,300 of supplies from the materials inventory. 2. Purchased $49,500 of materials. 3. Issued $45,100 in direct materials to the production department. 4. Paid $45,300 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 5. Returned $8,400 of the materials issued to production in (3) to the materials inventory. 6. Direct labor employees earned $79,500, 50% of which was paid in cash and the remainder credited to Wages Payable. 7. Purchased $19,500 of materials on account. 8. Recognized depreciation on manufacturing plant of $93,500. 9. Paid for the materials purchased in transaction (2) 10. 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 $530,000. Estimated overhead for the year was $2,173,000 The following balances appeared in the inventory accounts of Elmira Tool and Die for October: Materials Inventory Beginning Ending $ 37,500 Work-in-Process Inventory Finished Goods Inventory $ 10,200 Cost of Goods Sold 32,600 106,800 100, 300 Journal entry worksheet < A B C D E F G H J Issued $4,300 of supplies from the materials inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A C D E F G H I > Purchased $49,500 of materials.. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet < A B C D E F G H Issued $45,100 in direct materials to the production department. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Record entry Clear entry View general journal D E F G H I J > Journal entry worksheet < A B 0 Paid $45,300 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A B C D E F HI J Returned $8,400 of the materials issued to production in (3) to the materials inventory. Note: Enter debits before credits. Transaction 5 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A B C D E G H I J > Direct labor employees earned $79,500, 50% of which was paid in cash and the remainder credited to Wages Payable. Note: Enter debits before credits. Transaction 6 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B C D E F MG H I J > Purchased $19,500 of materials on account. Note: Enter debits before credits. Transaction 7 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A B C D E F G I J Recognized depreciation on manufacturing plant of $93,500. Note: Enter debits before credits. Transaction 8 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B C D E F G H J Paid for the materials purchased.in transaction (2). Note: Enter debits before credits. Transaction 9 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B D E F G H J Applied manufacturing overhead.for the month. Note: Enter debits before credits. Transaction 10 General Journal Debit Credit Record entry Clear entry View general journal Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Debit Beginning balance Ending balance 0 Manufacturing Overhead Control: Debit Beginning balance Ending balance Credit Work-in-Process Inventory Debit Credit Beginning balance Ending balance Transferred to Finished Goods Applied Manufacturing Overhead Credit Debit Credit Beginning balance Ending balance Accounts Payable Cash Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Ending balance Accumulated Depreciation-Property, Plant, and Equipment Wages Payable Debit Credit Debit Credit Begnning balance Beginning balance Ending balance 0 0 Ending balance 0 Beginning balance Goods Completed Ending balance Debit Finished Goods Inventory Credit Beginning balance Cost of Goods Sold Debit Credit Transfer to Cost of Goods Sold Goods Sold Ending balance 0 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: 1. Issued $4,300 of supplies from the materials inventory. 2. Purchased $49,500 of materials. 3. Issued $45,100 in direct materials to the production department. 4. Paid $45,300 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 5. Returned $8,400 of the materials issued to production in (3) to the materials inventory. 6. Direct labor employees earned $79,500, 50% of which was paid in cash and the remainder credited to Wages Payable. 7. Purchased $19,500 of materials on account. 8. Recognized depreciation on manufacturing plant of $93,500. 9. Paid for the materials purchased in transaction (2) 10. 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 $530,000. Estimated overhead for the year was $2,173,000 The following balances appeared in the inventory accounts of Elmira Tool and Die for October: Materials Inventory Beginning Ending $ 37,500 Work-in-Process Inventory Finished Goods Inventory $ 10,200 Cost of Goods Sold 32,600 106,800 100, 300 Journal entry worksheet < A B C D E F G H J Issued $4,300 of supplies from the materials inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A C D E F G H I > Purchased $49,500 of materials.. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet < A B C D E F G H Issued $45,100 in direct materials to the production department. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Record entry Clear entry View general journal D E F G H I J > Journal entry worksheet < A B 0 Paid $45,300 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A B C D E F HI J Returned $8,400 of the materials issued to production in (3) to the materials inventory. Note: Enter debits before credits. Transaction 5 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A B C D E G H I J > Direct labor employees earned $79,500, 50% of which was paid in cash and the remainder credited to Wages Payable. Note: Enter debits before credits. Transaction 6 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B C D E F MG H I J > Purchased $19,500 of materials on account. Note: Enter debits before credits. Transaction 7 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < A B C D E F G I J Recognized depreciation on manufacturing plant of $93,500. Note: Enter debits before credits. Transaction 8 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B C D E F G H J Paid for the materials purchased.in transaction (2). Note: Enter debits before credits. Transaction 9 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B D E F G H J Applied manufacturing overhead.for the month. Note: Enter debits before credits. Transaction 10 General Journal Debit Credit Record entry Clear entry View general journal Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Debit Beginning balance Ending balance 0 Manufacturing Overhead Control: Debit Beginning balance Ending balance Credit Work-in-Process Inventory Debit Credit Beginning balance Ending balance Transferred to Finished Goods Applied Manufacturing Overhead Credit Debit Credit Beginning balance Ending balance Accounts Payable Cash Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Ending balance Accumulated Depreciation-Property, Plant, and Equipment Wages Payable Debit Credit Debit Credit Begnning balance Beginning balance Ending balance 0 0 Ending balance 0 Beginning balance Goods Completed Ending balance Debit Finished Goods Inventory Credit Beginning balance Cost of Goods Sold Debit Credit Transfer to Cost of Goods Sold Goods Sold Ending balance 0