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The question is one as a whole Forest Components makes aircrraft parts. The following transactions occurred in July 1. Purchased $16,990 of materials on account.
The question is one as a whole
Forest Components makes aircrraft parts. The following transactions occurred in July 1. Purchased $16,990 of materials on account. 2. Issued $16,720 in direct materials to the production department. 3. Issued $1,360 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,100 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $33,000, which was paid in cash. 7. Paid $17,320 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 8. Recognized depreciation on manufacturing plant of $36,900. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,800. Estimated overhead for the year was $422,726. The following balances appeared in the inventory accounts of Forest Components for July: Beginning Ending $12,470 Materials Inventory Work-in-Process 10,540 Inventory Finished Goods Inventory $2,650 Cost of Goods Sold 6,980 73,900 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.) View transaction list Journal entry worksheet 1 2 3 5 6 7 8 9 Purchased $16,990 of materials. Note: Enter debits before credits. Transactions Debit Credit General Journal 1 Record entry Clear entry View general journal b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold Materials Inventory Work-In-Process Inventory Beg. bal. Beg. bal. Transferred to Finished Goods End. bal. End. bal. Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg. bal. End. bal. 0 End. bal 0 Accounts Payable Cash Beg. bal. Beg. bal. End. bal End. bal 0 Accumulated Depreciation- Property, Plant, and Equipment Finished Goods Inventory Beg. bal Beg. bal Transfer to Cost of Goods completed Goods Sold End. bal. 0 End. bal. 0 Cost of Goods Sold Beg.bal. GoodsStep by Step Solution
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