Required:

a. Prepare journal entries to record the transactions.

1)Purchased $21,500 of materials on account.

2)Issued $1,350 of supplies from the materials inventory.

3)Purchased $12,300 of materials on account.

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

5)Issued $14,700 in direct materials to the production department.

6)Incurred direct labor costs of $25,500, which were credited to Wages Payable.

7)Paid $22,300 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

8)Applied overhead on the basis of 120 percent of $25,500 direct labor costs.

9)Recognized depreciation on manufacturing property, plant, and equipment of $11,100.

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

The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm. 1. Purchased $21,500 of materials on account. 2. Issued $1,350 of supplies from the materials inventory. 3. Purchased $12,300 of materials on account. 4. Paid for the materials purchased in transaction (1) using cash. 5. Issued $14,700 in direct materials to the production department. 6. Incurred direct labor costs of $25,500, which were credited to Wages Payable. 7. Paid $22,300 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 8. Applied overhead on the basis of 120 percent of $25,500 direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $11,100. The following balances appeared in the accounts of Steve's Cabinets for April. Ending ? Beginning $31,290 7,700 34,300 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold ? $29,190 54,330 Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Work-In-Process Inventory Beg. bal. End. bal. Beg. bal. End. bal. Manufacturing Overhead Control Beg. bal. End. bal. Beg. bal. End. bal. Finished Goods Applied Manufacturing Overhead Beg. bal. End. bal. Beg. bal. End. bal. Beg. bal. Goods completed End. bal. Accounts Payable Wages Payable Finished Goods Inventory Transfer to Cost of Goods Sold Beg. bal. End. bal. Accumulated Depreciation Property, Plant, and Equipment Beg. bal. End. bal. Cash Beg. bal. Finished Goods Inventory End. bal. Cost of Goods Sold