Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sunset Products manufactures skateboards. The following transactions occurred in March 1. Purchased $25,500 of materials on account. 2. Issued $1,550 of supplies from the materials

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sunset Products manufactures skateboards. The following transactions occurred in March 1. Purchased $25,500 of materials on account. 2. Issued $1,550 of supplies from the materials inventory. 3. Purchased $26,100 of materials on account. 4. Paid for the materials purchased in transaction (1) using cash. 5. Issued $31,100 in direct materials to the production department. 6. Incurred direct labor costs of $30,500, which were credited to Wages Payable. 7. Pald $22,600 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. 8. Applied overhead on the basis of 120 percent of direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $6,100 The following balances appeared in the accounts of Sunset Products for March Beginning Ending Materials Inventory $10,650 7 Work-in-Process Inventory 17,600 ? Finished Goods Inventory 66,100 $37,600 Cost of loods Sold 74,100 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record the transactions. (If no entry is required for a transaction/event, select "No journal entry required the first account field.) Journal entry worksheet Purchased $25,500 of materials on account. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Required B > Required Journal entry worksheet X: A Purchased $25,500 of materials on account. B Issued $1,550 of supplies from the materials inventory. C Purchased $26,100 of materials on account. D Paid for the materials purchased in transaction (1) using cash. redit i E Issued $31,100 in direct materials to the production department. F Incurred direct labor costs of $30,500, which were credited to Wages Payable. Note : journal entry has been entered

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services A Systematic Approach

Authors: William Messier Jr, Steven Glover, Douglas Prawitt

10th edition

77732502, 978-0077732509

More Books

Students also viewed these Accounting questions

Question

develop ideas for a research project;

Answered: 1 week ago