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The following transactions occurred In January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. 1. Purchased $55,500 In materials on account. 2.
The following transactions occurred In January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. 1. Purchased $55,500 In materials on account. 2. Issued $3,300 In supplies from the materlals Inventory to the production department. 3. Pald for the materlals purchased In transaction (1). 4. Issued $27,300 In direct materlals to the production department. 5. Incurred wage costs of $60,000, which were debited to Payroll, a temporary account. Of this amount, $15,300 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $44,700 was paid In cash to the employees. See transactions (6) and (7) for additional Information about Payroll. 6. Recognized $28,000 In fringe benefit costs, Incurred as a result of the wages pald In (5). This $28,000 was debited to Payroll an credited to Fringe Benefits Payable. 7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, Indirect manufacturing labor and 10 percent, administrative and marketing costs. 8. Pald for utilities, power, equipment maintenance, and other miscellaneous Items for the manufacturing plant totaling $34,200. 9. Applied overhead on the basis of 170 percent of direct labor costs. 10. Recognized depreclation of $19,050 on manufacturing property, plant, and equipment. Requlred: a. Prepare journal entrles to record these transactions. b. The balances that appeared in the accounts of Apex Manufacturing are shown as follows. Prepare T-accounts to show the flow of costs during the perlod. Complete this question by entering your answers in the tabs below
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