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. 1. Purchased $54,700 in materials on account. 2.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses Job costing. 1. Purchased $54,700 in materials on account. 2. Issued $2,500 in supplies from the materials Inventory to the production department 3. Paid for the materials purchased in transaction (1). 4. Issued $26,500 in direct materials to the production department 5. Incurred wage costs of $52,000, which were debited to Payroll, a temporary account of this amount. $14,500 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $37,500 was paid in cash to the employees. See transactions (6) and () for additional Information about Payroll 6. Recognized $20,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $20,000 was debited to Payroll and 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. Paid for utilities, power, equipment maintenance, and other miscellaneous Items for the manufacturing plant totaling $33,400 9. Applied overhead on the basis of 180 percent of direct labor costs. 10. Recognized depreciation of $18,250 on manufacturing property, plant, and equipment Required: a. Prepare journal entries to record those transactions b. The balances that appeared in the accounts of Apex Manufacturing are shown as follows Ending Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods sold Beginning 357,025 13,875 63,250 $ 51,800 103,775 Prepare T-accounts to show the flow of costs during the period. Required A Required B Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, sele the first account field.) View transaction list Journal entry worksheet Record material purchases of $54,700 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 No journal entry required Accounts payable Accounts receivable Accumulated depreciation-property, plant, and equipment Administrative and marketino costs Recorder peral Journal Required A Required B > Required A Required B Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select the first account field.) View transaction list Journal entry worksheet

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

Management Systems Auditing A Practitioners Guide To Quality And Management Systems Audit

Authors: Dr Warren Doudle

1st Edition

B0C6W3G4W4, 979-8397130271

More Books

Students also viewed these Accounting questions

Question

Which kinds of advertising in which media influence you most? Why?

Answered: 1 week ago