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Sunset Products manufactures skateboards. The following transactions occurred in March. Purchased $30,000 of materials on account....

Sunset Products manufactures skateboards. The following transactions occurred in March.

  1. Purchased $30,000 of materials on account.

  2. Issued $1,500 of supplies from the materials inventory.

  3. Purchased $37,500 of materials on account.

  4. Paid for the materials purchased in transaction (1) using cash.

  5. Issued $45,000 in direct materials to the production department.

  6. Incurred direct labor costs of $37,500, which were credited to Wages Payable.

  7. Paid $42,250 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.

  8. Applied overhead on the basis of 140 percent of direct labor costs.

  9. Recognized depreciation on manufacturing property, plant, and equipment of $7,500.

  

The following balances appeared in the accounts of Sunset Products for March.

  

Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000


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.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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