Post the following cost data to the appropriate T-accounts to trace the flow of costs from the time they are incurred until the product is completed and sold. (Assume that purchases and expenses are credited to Cash or Accounts Payable.)

a. Direct materials purchased. . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 60,000$

b. Direct materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000

c. Indirect materials purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d. Indirect materials used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000

e. Wages payable, direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

f. Wages payable, indirect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 g. Selling and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . 32,000 h. Actual manufacturing overhead costs other than indirect materials and indirect labor 25,000 i. Manufacturing overhead applied 40,000 j. Work-in-process completed 120,000 k. Finished goods sold.

135,000

Transcribed Image Text:

Beg. Bal. Raw Materials Inventory 9,000 Work-in-Process Inventory Beg. Bal. 30,000 Cash (Accounts Payable) Manufacturing Overhead Finished Goods Inventory 20,000 Beg. Bal. Wages Payable Cost of Goods Sold Selling and Administrative Expenses