The following transactions occurred in January at Apex Manufacturing, a custom parts supplier Apex uses job costing Purchased $55,600 in materials on account Issued $3,400 in supplies from the materials inventory to the production department Paid for the materials purchased in transaction (1) Issued $27,400 in direct materials to the production department Incurred wage costs of $61,000, which were debited to Payroll, a temporary account Of this amount, $15,400 was withheld for payroll taxes and credited to Payroll Taxes Payable The remaining $45,600 was paid in cash to the employees See transactions (6) and (7) for additional information about Payroll Recognized $29,000 in fringe benefit costs, incurred as a result of the wages paid in (5) Analyzed the Payroll account and determined that 60 percent represented direct labor 30 percent, indirect manufacturing labor and 10 percent, administrative and marketing costs Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,300 Applied overhead on the basis of 160 percent of direct labor costs Recognized depreciation of $19,150 on manufacturing property, plant, and equipment Required a Prepare journal entries to record these transactions (If no entry is required for a transaction event, select No journal entry required in the first account field ) b The following balances appeared in the accounts of Apex Manufacturing Beginning Ending Materials Inventory $ 58,425 Work in Process Inventory 15,225 Finished Goods Inventory 64,150 $ 53,600 Cost of Goods Sold 108,275 Prepare T accounts to show the flow of costs during the period Work in Process Inventory 15,225 Materials Inventory Beg bal 58,425 Beg bal Goods Completed End bal 58,425 End bal 15,225 Manufacturing Overhead Control Applied Manufacturing Overhead Beg bal Beg bal End bal End bal Accounts Payable Cash Beg bal Beg bal End bal End bal Payroll Payroll Taxes Payable Beg bal Beg bal End bal End bal Fringe Benefits Payable Administrative and Marketing Costs Beg bal Beg bal End ba End bal Accumulated Depreciation Property, Plant, and Equipment Beg bal Finished Goods Beg bal Goods Completed End ba End bal Cost of Goods Sold Beg bal Finished Goods End bal

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Posted on Sep 18, 2024

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing: Purchased $55,600 in materials on account. Issued $3,400

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing:

Purchased $55,600 in materials on account.
Issued $3,400 in supplies from the materials inventory to the production department.
Paid for the materials purchased in transaction (1).
Issued $27,400 in direct materials to the production department.
Incurred wage costs of $61,000, which were debited to Payroll, a temporary account. Of this amount, $15,400 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $45,600 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
Recognized $29,000 in fringe benefit costs, incurred as a result of the wages paid in (5).
Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs.
Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,300.
Applied overhead on the basis of 160 percent of direct labor costs.
Recognized depreciation of $19,150 on manufacturing property, plant, and equipment.

Required:

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

b. The following balances appeared in the accounts of Apex Manufacturing:

	Beginning		Ending
Materials Inventory	$	58,425
Work-in-Process Inventory		15,225
Finished Goods Inventory		64,150	$	53,600
Cost of Goods Sold				108,275

Prepare T-accounts to show the flow of costs during the period.

image text in transcribed

Work-in-Process Inventory 15,225 Materials Inventory Beg. bal 58,425 Beg. bal Goods Completed End. bal 58,425 End. bal 15,225 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal Beg. bal End. bal End. bal Accounts Payable Cash Beg. bal Beg. bal End. bal End. bal Payroll Payroll Taxes Payable Beg. bal Beg. bal End. bal End. bal Fringe Benefits Payable Administrative and Marketing Costs Beg. bal Beg. bal End. ba End. bal Accumulated Depreciation-Property, Plant, and Equipment Beg. bal Finished Goods Beg. bal Goods Completed End. ba End. bal Cost of Goods Sold Beg. bal Finished Goods End. bal