The following transactions occurred in April at Steve’s Cabinets, a custom cabin

Question

The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm: Purchased $26,000 of materials on account. Issued $1,800 of supplies from the materials inventory. Purchased $13,200 of materials on account. Paid for the materials purchased in transaction (1) using cash. Issued $15,600 in direct materials to the production department. Incurred direct labor costs of $30,000, which were credited to Wages Payable. Paid $23,200 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. Applied overhead on the basis of 120 percent of $30,000 direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $12,000. The following balances appeared in the accounts of Steve’s Cabinets for April: Beginning Ending Materials Inventory $ 32,640 ? Work-in-Process Inventory 8,600 ? Finished Goods Inventory 35,200 $ 29,640 Cost of Goods Sold 55,680 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.)

Explanation / Answer

Journal Entries :-

S. No. Particulars Debit ($) Credit ($) 1 Materials Inventory 26000 To Accounts Payable 26000 2 Manufacturing Overhead Control 1800 To Materials Inventory 1800 3 Materials Inventory 13200 To Accounts Payable 13200 4 Accounts Payable 26000 To Cash 26000 5 Work in Process (Direct Materials) 15600 To Materials Inventory 15600 6 Work in Process (Direct Labor) 30000 To Wages Payable 30000 7 Manufacturing Overhead Control 23200 To Cash 23200 8 Work in Process (Overhead)($30000 *120%) 36000 To Applied Manufacturing Overhead 36000 9 Manufacturing Overhead Control 12000 To Accumulated Depreciation (Property, Plant and Equipment) 12000

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