In: Accounting
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm:
Purchased $21,500 of materials on account.
Issued $1,350 of supplies from the materials inventory.
Purchased $12,300 of materials on account.
Paid for the materials purchased in transaction (1) using cash.
Issued $14,700 in direct materials to the production department.
Incurred direct labor costs of $25,500, which were credited to Wages Payable.
Paid $22,300 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
Applied overhead on the basis of 120 percent of $25,500 direct labor costs.
Recognized depreciation on manufacturing property, plant, and equipment of $11,100.
The following balances appeared in the accounts of Steve’s
Cabinets for April:
Beginning | Ending | |||||
Materials Inventory | $ | 31,290 | ? | |||
Work-in-Process Inventory | 7,700 | ? | ||||
Finished Goods Inventory | 34,300 | $ | 29,190 | |||
Cost of Goods Sold | 54,330 | |||||
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.)
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.