Problem 7-51 Tracing Costs in a Job Company (LO 7-2, 3) The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing: 1. Purchased $54,900 in materials on account. 2. Issued $2,700 in supplies from the materials inventory to the production department. 3. Paid for the materials purchased in transaction (1). 4. Issued $26,700 in direct materials to the production department. 5. Incurred wage costs of $54,000, which were debited to Payroll, a temporary account. Of this amount, $14,700 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $39,300 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 6. Recognized $22,000 in fringe benefit costs, incurred as a result of the wages paid in (5). 7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. 8. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $33,600. 9. Applied overhead on the basis of 165 percent of direct labor costs. 10. Recognized depreciation of $18,450 on manufacturing property, plant, and equipment. Required: a. 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.) Journal entry worksheet 2 3 4 5 6 7 8 9 10 Record material purchases of $54,900 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal b. The following balances appeared in the accounts of Apex Manufacturing: Ending Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $57,375 14,175 63,450 $ 52,200 104,775 Prepare T-accounts to show the flow of costs during the period. Materials Inventory Work-in-Process Inventory Beg. bal. Beg. bal. Goods Completed End. bal. End. bal. Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Cash sh Beg. bal. Beg. bal. End. bal. End. bal. Payroll Payroll Taxes Payable Beg. bal. Beg. bal. End. bal. End. bal. Fringe Benefits Payable Administrative and Marketing Costs Beg. bal. Beg. bal. End. bal. End. bal. Finished Goods Accumulated Depreciation Property, Plant, and Equipment Beg. bal. Beg. bal. Goods Completed End. bal. End, bal. Cost of Goods Sold Beg. bal. Finished Goods End. bal. Problem 7-51 Tracing Costs in a Job Company (LO 7-2, 3) The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing: 1. Purchased $54,900 in materials on account. 2. Issued $2,700 in supplies from the materials inventory to the production department. 3. Paid for the materials purchased in transaction (1). 4. Issued $26,700 in direct materials to the production department. 5. Incurred wage costs of $54,000, which were debited to Payroll, a temporary account. Of this amount, $14,700 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $39,300 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 6. Recognized $22,000 in fringe benefit costs, incurred as a result of the wages paid in (5). 7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. 8. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $33,600. 9. Applied overhead on the basis of 165 percent of direct labor costs. 10. Recognized depreciation of $18,450 on manufacturing property, plant, and equipment. Required: a. 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.) Journal entry worksheet 2 3 4 5 6 7 8 9 10 Record material purchases of $54,900 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal b. The following balances appeared in the accounts of Apex Manufacturing: Ending Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $57,375 14,175 63,450 $ 52,200 104,775 Prepare T-accounts to show the flow of costs during the period. Materials Inventory Work-in-Process Inventory Beg. bal. Beg. bal. Goods Completed End. bal. End. bal. Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Cash sh Beg. bal. Beg. bal. End. bal. End. bal. Payroll Payroll Taxes Payable Beg. bal. Beg. bal. End. bal. End. bal. Fringe Benefits Payable Administrative and Marketing Costs Beg. bal. Beg. bal. End. bal. End. bal. Finished Goods Accumulated Depreciation Property, Plant, and Equipment Beg. bal. Beg. bal. Goods Completed End. bal. End, bal. Cost of Goods Sold Beg. bal. Finished Goods End. bal