Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Forest Components makes aircraft parts. The following transactions occurred in July, 1. Purchased $16,900 of materials on account 2. Issued $16,820 in direct materials to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Forest Components makes aircraft parts. The following transactions occurred in July, 1. Purchased $16,900 of materials on account 2. Issued $16,820 in direct materials to the production department 3. Issued $1,250 of supplies from the materials inventory 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,090 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 $17,320 on account 8. Recognized depreciation on manufacturing plant of $36,500. 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 $434,500. Estimated overhead for the year was $408,430 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 2 $12,550 2 10,570 $2,760 7,010 7 74,400 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 Required A Required B Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journa the first account field.) View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven A. Finkler

1st Edition

0834205289, 978-0834205284

More Books

Students also viewed these Accounting questions

Question

1. Send the student on an errand, or ask him or her for help.

Answered: 1 week ago