Explication A. Purchased $16,880 of materials on account. B. Issued $16,770 in direct materials to the production department. C. Issued $1,280 of supplies from the
Explication
A. Purchased $16,880 of materials on account.
B. Issued $16,770 in direct materials to the production department.
C. Issued $1,280 of supplies from the materials inventory.
D. Paid for the materials purchased in transaction (1) using cash.
E. Returned $2,050 of the materials issued to production in (2) to the materials inventory.
F. Direct labor employees earned $32,700, which was paid in cash.
G. Direct labor employees earned $32,700, which was paid in cash.
H. Recognized depreciation on manufacturing plant of $35,400.
I. Applied manufacturing overhead for the month.
Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,880 of materials on account. 2. Issued $16,770 in direct materials to the production department. 3. Issued $1,280 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,050 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,700, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,270 on account. 8. Recognized depreciation on manufacturing plant of $35,400. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,400. Estimated overhead for the year was $430,056 The following balances appeared in the inventory accounts of Forest Components for July. Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning Ending ? $12,570 10,580 $2,700 7,070 ? 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Purchased $16,880 of materials on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Work-In-Process Inventory Beg. bal. Beg. bal. Transferred to Finished Goods End, bal End, bal Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg, bal End. bal. End. bal. Accounts Payable Cash Beg bal. Beg. bal. End. bal. End. bal. Finished Goods Inventory Accumulated Depreciation Property, Plant, and Equipment Beg. bal Beg. bal Goods completed Transfer to Cost of Goods Sold End. bal. End. bal Cost of Goods Sold Beg. bal. Goods completed End. bal
