Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. Purchased $54,000 in materials on account. Issued $1,800

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

  1. Purchased $54,000 in materials on account.
  2. Issued $1,800 in supplies from the materials inventory to the production department.
  3. Paid for the materials purchased in transaction (1).
  4. Issued $25,800 in direct materials to the production department.
  5. Incurred wage costs of $45,000, which were debited to Payroll, a temporary account. Of this amount, $13,800 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $31,200 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
  6. Recognized $24,000 in fringe benefit costs, incurred as a result of the wages paid in (5).This$24,000was debited to Payroll and credited to Fringe Benefits Payable.
  7. Analyzed the Payroll account and determined that 70 percent represented direct labor; 20 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs.
  8. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $32,700.
  9. Applied overhead on the basis of 160 percent of direct labor costs.
  10. Recognized depreciation of $17,550 on manufacturing property, plant, and equipment.

Required:

a.Prepare journal entries to record these transactions.

b.The balances that appeared in the accounts of Apex Manufacturing are shown as follows.

BeginningEndingMaterials Inventory$56,025Work-in-Process Inventory12,825Finished Goods Inventory62,550$50,400Cost of Goods Sold100,275

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

Why are positive stereotypes harmful?

Answered: 1 week ago

Question

1. To generate a discussion on the concept of roles

Answered: 1 week ago

Question

6. What information processes operate in communication situations?

Answered: 1 week ago

Question

3. How can we use information and communication to generate trust?

Answered: 1 week ago