Question 5

Exercise 7-22 (Algo) Assigning Costs to Jobs (LO 7-1, 2) The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm. 1. Purchased $26,000 of materials on account. 2. Issued $1.800 of supplies from the materials Inventory. 3. Purchased $13,200 of materials on account 4. Paid for the materials purchased in transaction (1) using cash. 5. Issued $15.600 in direct materials to the production department. 6. Incurred direct labor costs of $30.000, which were credited to Wages Payable. 7. Paid $23.200 cash for utilities. power equipment maintenance, and other miscellaneous items for the manufacturing plant. 8. Applied overhead on the basis of 120 percent of $30,000 direct labor costs. 9. Recognized depreciation on manufacturing property.plant, and equipment of $12,000. The following balances appeared in the accounts of Steve's Cabinets for April. Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning Ending $32,640 ? 8,600 ? 35,200 $29,640 55,688 Required: a. Prepare Journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Required Round Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Material Inventory Work-in-Procec lnventory Bogbal Bog, bal Finished Goods End. bal. End bal Manufacturing Overhead Control Applied Manufacturing Overhead Bogbal Bogbal End bal Endbal Acoounts Payable Cach Bogbal. Beg bal End. bal End bal Wages Payable Aboumulated Depreciation Property, Plant, and Equipment Beg bal Beg. bal. End, bal End. bal Finished Goods Inventory Coct of Goods Bold Bogbal. Goods completed Transfer to Contot Goods Sold Bog, bal Finished Code Inventory End bal. End. bal > Purchased $26,000 of materials on account. Note: Enter dubbfore credits Transaction General Journal Debit Credit econdary Clearly Required A Required B >