Question

Eppich Corporation has provided the following data for the most recent month:

Raw materials, beginning balance	$	25,000
Work in process, beginning balance	$	34,600
Finished Goods, beginning balance	$	52,600

Transactions:

(1)	Raw materials purchases	$	78,200
(2)	Raw materials used in production (all direct materials)	$	78,800
(3)	Direct labor	$	54,600
(4)	Manufacturing overhead costs incurred	$	97,000
(5)	Manufacturing overhead applied	$	74,600
(6)	Cost of units completed and transferred from Work in Process to Finished Goods	$	190,000
(7)	Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold		?
(8)	Finished goods are sold	$	224,400

Required:

Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.

Answer 1

1 Raw Materials
Particulars	Amount	Particulars	Amount
Beginning Balance	$ 25,000	(2) Direct Material	$ 78,800
(1) Raw Materials Purchased	$ 78,200
Ending Balance	$ 24,400
2. Work in Process
Particulars	Amount	Particulars	Amount
Beginning Balance	$ 34,600	(6)Transfer to Finished Goods	$ 190,000
(2)Direct Material	$ 78,800
(3)Direct Labot	$ 54,600
(5)Manufacturing Overheads Applied	$ 74,600
Ending Balance	$ 52,600
3. Finished Goods
Particulars	Amount	Particulars	Amount
Beginning Balance	$ 52,600	(8)Cost of Goods Sold	$ 224,400
(6)Transfer From WIP	$ 190,000
Ending Balance	$ 18,200
4 Manufacturing Overhead
Particulars	Amount	Particulars	Amount
(4)Manufacturing Overheads Incurred	$ 97,000	(5)Manufacturing Overhead applied	$ 74,600
Manufacturing Overhead Underapplied	$ 22,400	(7)Cost of Goods Sold	$ 22,400
5. Cost of Goods Sold
(7)Manufacturing Overhead Underapplied	$ 22,400
(8)Cost of Goods Sold	$ 224,400
	$ 246,800