Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

he following transactions occurred in April at Steves Cabinets, a custom cabinet firm:

Purchased $80,000 of materials on account.

Issued $4,000 of supplies from the materials inventory.

Purchased $56,000 of materials on account.

Paid for the materials purchased in transaction (1) using cash.

Issued $68,000 in direct materials to the production department.

Incurred direct labor costs of $100,000, which were credited to Wages Payable.

Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

Applied overhead on the basis of 125 percent of $100,000 direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $50,000.

The following balances appeared in the accounts of Steves Cabinets for April:

	Beginning			Ending
Materials Inventory	$	148,200			?
Work-in-Process Inventory		33,000			?
Finished Goods Inventory		166,000		$	143,200
Cost of Goods Sold					263,400

Transactions General Journal Debit Credit Materials inventory 80,000 Accounts payable 80,000 2 Manufacturing overhead control 4,000 Materials inventory 4,000 Materials inventory 56,000 Accounts payable 56,000 4 Accounts payable 80,000 Cash 80,000 Work-in-process-direct materials 68,000 Materials inventory 68,000 6 Work-in-process-direct labor 100,000 Wages payable 100,000 7 Manufacturing overhead control 106,000 Cash 106,000 Work-in-process-overhead 125,000 Applied manufacturing overhead 125,000 Manufacturing overhead control 50,000