Question 4

Exercise 7-24 (Algo) Assigning Costs to Jobs (LO 7-1, 2) Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16.990 of materials on account. 2. Issued $16.870 in direct materials to the production department. 3. Issued $1,380 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,140 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31.500, 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 $36.000. 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 $435,100. Estimated overhead for the year was $413,345 The following balances appeared in the inventory accounts of Forest Components for July. Beginning Ending Materials Inventory $12,438 Work-in-Process Inventory ? 18,540 Finished Goods Inventory $2,770 7,85e Cost of Goods Sold 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 Prepare foumal 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 B F 1 Purchased $16,990 of materials on account. Nota: El debts for Transaction General Journal Debit Credit Recordandy Clearly Complete this question by entering your answers in the tabs below. Required A gured B Prepare T-acmounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Material Inventory Work-in-Prococo inventory Beg bal Bog, bal Transferred to Finished Goods Endbal End bal Manufacturing Overhead Control Applied Manufacturing Overhead Bog, bal Beg bal End. bal. End, bal Accounts Payable Beghel Beghel End, bal End, bal. Finished Goods Inventory Acoumulated Depreciation Property. Plant, and Equipment Bogbal Bogbal Goods completed Transfer to Cost of Goods Sold End, bal End. bal Cost of Goods Sold Bogbal Goods completed End. bal.