The following transactions occurred in April at Steve\'s Cabinets, a custom cabi

Question

The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm 1. Purchased $18,000 of materials on account. 2. Issued $1,000 of supplies from the materials inventory 3. Purchased $11,600 of materials on account. 4. Paid for the materials purchased in transaction (1) using cash 5. Issued $14,000 in direct materials to the production department. 6. Incurred direct labor costs of $22,000, which were credited to Wages Payable 7. Paid $21,600 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 8. Applied overhead on the basis of 135 percent of $22,000 direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $10,400 The following balances appeared in the accounts of Steve's Cabinets for April Beginning Ending Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold $30,240 7,000 33,600 $28,840 53,280 Required a. 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 Debit Credit Materials inventory 18,000 Accounts payable 18,000 2 2 Manufacturing overhead control 1,000 Materials inventory 1,000 Materials inventory 11,600 Accounts payable 11,600 4 Accounts payable 18,000 Cash 18,000 Work-in-process-direct materials 4,000 Materials inventory 4,000 Work-in-process-direct labor 22,000 Wages payable 22,000 Manufacturing overhead control 21,600 b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold

Explanation / Answer

Materials inventory Work in process inventory Beg bal 30,240 Beg.Bal 7,000 1 18,000 1,000 2 5) 14,000 48,520 Finished goods 3 11,600 14,000 5 6) 22,000 8) 29,700 End bak 44,840 end bal 24,180 Manufacturing overhead control Applied manufacturing overhead Beg bal 0 Beg bal 0 2) 1,000 29,700 8) 7) 21,600 9) 10,400 End bal 33000 end bal 29,700 Accounts payable Cash Beg bal 0 beg bal 0 4) 18,000 18,000 1) 18,000 4) 11,600 3) 21,600 7) End bal 11,600 End bal 39,600 Wages payable Accumulated dep=-PP&E Beg bal 0 Beg bal 0 22,000 6) 10,400 9) End bal 22,000 End bal 10,400 Finished goods inventory Cost of goods sold Beg bal 33,600 beg bal 0 WIP 48,520 53,280 finished go 53,280 End bal 28,840 End bal 53,280

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.