Solution: a) Date Accounts DR CR Raw Materials inventory 20,000 Account payable 20,000 Purchasing raw materials b.i) RM Inventory c) Manufacturing Overhead Date Accounts DR CR Direct Materials put in production 15,870 Indirect Materials put in production 2,900 Accounts payable 18,770 Use of direct and indirect materia/s b.ii) Work-in-process Inventory Recording transactions related to the costs incurred in the production process. During the current month, Cardillo has incurred the following manufacturing costs: Beginning balance of WIP Direct materials used in the production process Direct labor (not paid yet) Manufacturing overhead applied Costs of goods manufactured (COGM) $19,460 $15,870 $17,600 $13,200 $48,240 ) Manufacturing Overhead

Beginning balance of RM Beginning balance of WIP Purchase of RM on account Direct materials (DM) put into production process Indirect materials (IDM) put into production process $5,200 $12,600 $20,000 $15,870 $2,900 a) Provide the journal entries to record the transactions occurred during the current month. b) Update the T-account for - i) Raw materials inventory and ii) Work-in-process inventory. c) Establish the T account for manufacturing overhead. Solution: a) \begin{tabular}{|l|l|r|r|} \hline Date & Accounts & DR & CR \\ \hline & Raw Materials inventory & 20,000 & \\ \hline & Account payable & & 20,000 \\ \hline & Purchasing raw materials & & \\ \hline \end{tabular} \begin{tabular}{|l|l|r|r|} \hline Date & Accounts & DR & CR \\ \hline & Direct Materials put in production & 15,870 & \\ \hline & Indirect Materials put in production & 2,900 & \\ \hline & Accounts payable & & 18,770 \\ \hline & Use of direct and indirect materials & & \end{tabular} b.i) b.ii) c) \begin{tabular}{|l|l|} \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} ) \begin{tabular}{|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Manufacturing Overhead } \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}