Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,940 of materials on account. 2. Issued $16,720 in direct materials to the production department. 3. Issued $1,370 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 $31,600, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,250 on account. 8. Recognized depreciation on manufacturing plant of $35,300. 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 $434,900. Estimated overhead for the year was $408,806. 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 ? $12,430 2 10,540 $ 2,610 6,950 ? 74,100 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 $16,940 of materials on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal 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 Issued $16,720 in direct materials to the production department. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal 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 Issued $1,370 of supplies from the materials inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 Record entry Clear entry View general journal 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 D E F G H | > Paid for the materials purchased in transaction (1) using cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 Record entry Clear entry View general Journal 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 Returned $2,050 of the materials issued to production in (2) to the materials inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 5 Record entry Clear entry View general Journal 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 Direct labor employees earned $31,600, which was paid in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 6 Record entry Clear entry View general Journal 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 miscellaneous items for the manufacturing plant for $17,250 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 7 Record entry Clear entry View general Journal 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 B C D E F G H 1 > Recognized depreciation on manufacturing plant of $35,300. Note: Enter debits before credits. General Journal Debit Credit Transaction 8 Record entry Clear entry View general journal 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 Applied manufacturing overhead for the month. Note: Enter debits before credits. Transaction General Journal Debit Credit 9 Record entry Clear entry View general Journal 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. 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. Required A Required B
