The following transactions occurred in April at Steves Cabinets, a custom cabinet firm Purchased $18,500 of materials on account Issued $1,050 of supplies from the materials inventory Purchased $11,700 of materials on account Paid for the materials purchased in transaction (1) using cash Issued $14,100 in direct materials to the production department Incurred direct labor costs of $22,500, which were credited to Wages Payable Paid $21,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant Applied overhead on the basis of 120 percent of $22,500 direct labor costs Recognized depreciation on manufacturing property, plant, and equipment of $10,500 The following balances appeared in the accounts of Steves Cabinets for April Beginning Ending Materials Inventory $ 30,390 Work in Process Inventory 7,100 Finished Goods Inventory 33,700 $ 28,890 Cost of Goods Sold 53,430 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 ) b Prepare T accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 12, 2024

The following transactions occurred in April at Steves Cabinets, a custom cabinet firm: Purchased $18,500 of materials on account. Issued $1,050 of supplies from the

The following transactions occurred in April at Steves Cabinets, a custom cabinet firm:

Purchased $18,500 of materials on account.
Issued $1,050 of supplies from the materials inventory.
Purchased $11,700 of materials on account.
Paid for the materials purchased in transaction (1) using cash.
Issued $14,100 in direct materials to the production department.
Incurred direct labor costs of $22,500, which were credited to Wages Payable.
Paid $21,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
Applied overhead on the basis of 120 percent of $22,500 direct labor costs.
Recognized depreciation on manufacturing property, plant, and equipment of $10,500.

The following balances appeared in the accounts of Steves Cabinets for April:

	Beginning		Ending
Materials Inventory	$	30,390		?
Work-in-Process Inventory		7,100		?
Finished Goods Inventory		33,700	$	28,890
Cost of Goods Sold				53,430

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.)

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