The following transactions occurred in April at Steves Cabinets, a custom cabinet firm Purchased $26,000 of materials on account Issued $1,800 of supplies from the materials inventory Purchased $13,200 of materials on account Paid for the materials purchased in transaction (1) using cash Issued $15,600 in direct materials to the production department Incurred direct labor costs of $30,000, which were credited to Wages Payable Paid $23,200 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant Applied overhead on the basis of 120 percent of $30,000 direct labor costs Recognized depreciation on manufacturing property, plant, and equipment of $12,000 The following balances appeared in the accounts of Steves Cabinets for April Beginning Ending Materials Inventory $ 32,640 Work in Process Inventory 8,600 Finished Goods Inventory 35,200 $ 29,640 Cost of Goods Sold 55,680 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

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Posted on Sep 19, 2024

The following transactions occurred in April at Steves Cabinets, a custom cabinet firm: Purchased $26,000 of materials on account. Issued $1,800 of supplies from the

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

Purchased $26,000 of materials on account.
Issued $1,800 of supplies from the materials inventory.
Purchased $13,200 of materials on account.
Paid for the materials purchased in transaction (1) using cash.
Issued $15,600 in direct materials to the production department.
Incurred direct labor costs of $30,000, which were credited to Wages Payable.
Paid $23,200 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
Applied overhead on the basis of 120 percent of $30,000 direct labor costs.
Recognized depreciation on manufacturing property, plant, and equipment of $12,000.

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

	Beginning		Ending
Materials Inventory	$	32,640		?
Work-in-Process Inventory		8,600		?
Finished Goods Inventory		35,200	$	29,640
Cost of Goods Sold				55,680

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