Question

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

Raw materials, beginning balance	$	19,000
Work in process, beginning balance	$	32,200
Finished Goods, beginning balance	$	50,200

Transactions:

(1)	Raw materials purchases	$	79,400
(2)	Raw materials used in production (all direct materials)	$	77,600
(3)	Direct labor	$	52,200
(4)	Manufacturing overhead costs incurred	$	91,000
(5)	Manufacturing overhead applied	$	72,200
(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	$	220,800

Required:

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

Answer 1

EPPICH CORPORATION
Raw Material
Particular	Amount	Particular	Amount
To Balance b/d	$       19,000.00		$       77,600.00
	$       79,400.00	Balance C/d	$       20,800.00
Total	$       98,400.00	Total	$       98,400.00
Work In Process
Particular	Amount	Particular	Amount
To Balance B/d	$       32,200.00		$    1,90,000.00
	$       77,600.00	Balance C/d	$       44,200.00
	$       52,200.00
	$       72,200.00
Total	$    2,34,200.00	Total	$    2,34,200.00
Manufacturing Overhead
Particular	Amount	Particular	Amount
	$       91,000.00		$       72,200.00
			$       18,800.00
Total	$       91,000.00	Total	$       91,000.00
Manufacturing Overhead Incurred	$       91,000.00
Manufacturing Overhead applied	$       72,200.00
Manuafacturing Overhead underapplied	$       18,800.00
Finished Goods
Particular	Amount	Particular	Amount
To Balance B/d	$       50,200.00		$    2,20,800.00
	$    1,90,000.00	By Balance C/d	$       19,400.00
Total	$    2,40,200.00	Total	$    2,40,200.00
Cost of goods sold
Particular	Amount	Particular	Amount
	$    2,20,800.00
	$       18,800.00	By Balance C/d	$    2,39,600.00
Total	$    2,39,600.00	Total	$    2,39,600.00