Wework i ve & Exi Chec Exercise 7-22 (Static) Assigning Costs to Jobs (LO 7-1, 2) The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm. 1. Purchased $80,000 of materials on account. 2. Issued $4,000 of supplies from the materials inventory 3. Purchased $56,000 of materials on account. 4. Paid for the materials purchased in transaction (1) using cash. 5. Issued $68,000 in direct materials to the production department. 6. Incurred direct labor costs of $100,000, which were credited to Wages Payable. 7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant 8. Applied overhead on the basis of 125 percent of $100,000 direct labor costs 9. Recognized depreciation on manufacturing property, plant, and equipment of $50,000. The following balances appeared in the accounts of Steve's Cabinets for April Ending Materials Inventory Work-in-Process Inventory Finished Goods Inventory Coat of Goods Sold Beginning $148,200 33,000 166,000 $143,200 263, 400 Required: a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through cost of Goods Sold. Check Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transactions General Journal Credit Debit 80,000 Materials inventory Accounts payable 80,000 4,000 B Work-in-process-direct materials Materials inventory 4,000 56,000 Materials inventory Accounts payable 56,000 56,000 56.000 Accounts payable Cash Saved Help Work-in-process-direct materials Materials inventory 68,000 68,000 100,000 Work-in-process-direct labor Wages payable 100,000 106,000 Manufacturing overhead control Cash 106,000 ces 125,000 Work-in-process-overhead Manufacturing overhead control 125,000 50,000 Applied manufacturing overhead Accumulated depreciation--property, plant and equipment 50,000 Required B Required A work Save & Exit Su Check my wc Required A Required B Prepare T-accounts to show the flow of costs during the period from Materials Inventory through cost of Goods Sold. Work-In-Process Inventory Materials Inventory 30,540 Beg. bal. Beg. bal. Finished Goods 30.540 End. bal. End, bal Applied Manufacturing Overhead Manufacturing Overhead Control Beg bal. Beg, bal End, bal. 0 0 End, bal Accounts Payable k A Saved H a ve & Exit Submi Check my work Accounts Payable Beg. bal. Beg. bal. End. bal. End. bal Wages Payable Accumulated Depreciation-Property, Plant, and Equipment Beg. bal. Beg. bal. End, bal End. bal. Cost of Goods Sold Finished Goods Inventory Beg bal Beg. bal. Transfer to Cost of Goods Sold Finished Goods Inventory End, bal Goods completed 0 End. bal. ( Required A
