Question
The following transactions occurred in April at Steves Cabinets, a custom cabinet firm: Purchased $17,000 of materials on account. Issued $900 of supplies from the
The following transactions occurred in April at Steves Cabinets, a custom cabinet firm:
Purchased $17,000 of materials on account.
Issued $900 of supplies from the materials inventory.
Purchased $11,400 of materials on account.
Paid for the materials purchased in transaction (1) using cash.
Issued $13,800 in direct materials to the production department.
Incurred direct labor costs of $21,000, which were credited to Wages Payable.
Paid $21,400 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
Applied overhead on the basis of 125 percent of $21,000 direct labor costs.
Recognized depreciation on manufacturing property, plant, and equipment of $10,200.
The following balances appeared in the accounts of Steves Cabinets for April:
BeginningEndingMaterials Inventory$29,940?Work-in-Process Inventory6,800?Finished Goods Inventory33,400$28,740Cost of Goods Sold52,980
b.Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started