Sunset Products manufactures skateboards. The following transactions occurred in March:

Purchased $30,000 of materials on account.

Issued $1,500 of supplies from the materials inventory.

Purchased $37,500 of materials on account.

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

Issued $45,000 in direct materials to the production department.

Incurred direct labor costs of $37,500, which were credited to Wages Payable.

Paid $42,250 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.

Applied overhead on the basis of 140 percent of direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $7,500.

The following balances appeared in the accounts of Sunset Products for March:

	Beginning			Ending
Materials Inventory	$	13,500			?
Work-in-Process Inventory		24,750			?
Finished Goods Inventory		97,500		$	54,750
Cost of Goods Sold					120,000

Required:

a. Prepare journal entries to record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Transactions General Journal Debit Credit

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2.

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9.

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

Materials Inventory

Beg. bal. ___________ ____________

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End. bal. ___________ ____________ ______

Work in Progress Inventory

Beg. bal. ___________ ____________

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End. bal. ___________ ____________ ______

Manufacturing Overhead Control

Beg. bal. ___________ ____________

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End. bal. ___________ ____________ ______

Applied Manufacturing Overhead

Beg. bal. ___________ ____________

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End. bal. ___________ ____________ ______

Accounts Payable

Beg. bal. ___________ ____________

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End. bal. ___________ ____________ ______

Cash

Beg. bal. ___________ ____________

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End. bal. ___________ ____________ ______

Wages Payable

Beg. bal. ___________ ____________

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End. bal. ___________ ____________ ______

Accumulated Depreciation-Property, Plant, and Equipment

Beg. bal. ___________ ____________

______ ___________ ____________ ______

______ ___________ ____________ ______

End. bal. ___________ ____________ ______

Finished Goods Inventory

Beg. bal. ___________ ____________

Goods Completed ___________ ____________ Transfer to Cost of Goods Sold

End. bal. ___________ ____________

Cost of Goods Sold

Beg. bal. ___________ ____________

Finished Goods Inventory ___________ ____________

End. bal. ___________ ____________