The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm: Purchased $21,500 of...

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.

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Expert Solution

ekkarill92 answered 1 year ago

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