Question

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

Raw materials, beginning balance	$	16,500
Work in process, beginning balance	$	31,200
Finished Goods, beginning balance	$	49,200

Transactions:

(1)	Raw materials purchases	$	79,900
(2)	Raw materials used in production (all direct materials)	$	77,100
(3)	Direct labor	$	51,200
(4)	Manufacturing overhead costs incurred	$	88,500
(5)	Manufacturing overhead applied	$	71,200
(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	$	219,300

Required:

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

Answer 1

RAW MATERIAL INVENTORY
Balance		16,500	WIP Inventory		77,100
Accounts payable		79,900
Ending Balance		19,300
MANUFACTURING OVERHEADS
Accounts Payable		88,500	Work in process Inventory		71,200
			Cost of goods sold		17,300
Ending balance		0
Factory wages
Wages payable		51,200	Work in process inventory		51,200
Balance		0
WORK IN PROCESS INVENTORY
Balance		31,200	Finished Goods Inventory		190,000
Raw material Inv.		77,100
Factory wages		51,200
Manufacturing Overheads		71,200
Balance		40,700
FINISHED GOODS INVENTORY
Balance		49,200	Cost of Goods sold		219,300
Work in prcess inventory		190,000
Balance		19,900
Cost of goods sold
Finished goods inventory		219,300
Mnaufacturing OH		17,300
Balance		236,600