Question
Problem 7-58 (Static) Tracing Costs in a Job Company (LO 7-2, 3) The following transactions occurred in January at Apex Manufacturing, a custom parts supplier.
Problem 7-58 (Static) 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.
- Purchased $75,180 in materials on account.
- Issued $2,100 in supplies from the materials inventory to the production department.
- Paid for the materials purchased in transaction (1).
- Issued $35,700 in direct materials to the production department.
- Incurred wage costs of $58,800, which were debited to Payroll, a temporary account. Of this amount, $18,900 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $39,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
- Recognized $29,400 in fringe benefit costs, incurred as a result of the wages paid in (5). This $29,400 was debited to Payroll and credited to Fringe Benefits Payable
- Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs.
- Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $45,360.
- Applied overhead on the basis of 175 percent of direct labor costs.
- Recognized depreciation of $24,150 on manufacturing property, plant, and equipment.
Required:
a. Prepare journal entries to record these transactions.
b. The balances that appeared in the accounts of Apex Manufacturing are shown as follows.
Beginning | Ending | |||||
Materials Inventory | $ | 77,805 | ||||
Work-in-Process Inventory | 17,325 | |||||
Finished Goods Inventory | 87,150 | $ | 69,720 | |||
Cost of Goods Sold | 138,285 | |||||
Prepare T-accounts to show the flow of costs during the period.
omplete 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.)
Journal entry worksheet
- Record material purchases of $75,180 on account.
Note: Enter debits before credits.
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- Required A
- Required B
- Required A
- Required B
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