1. Purchased $20,500 of materials on account. 2. Issued $1,250 of supplles from the materials inventory. 3. Purchased $12,100 of materials on account. 4. Pald for the materials purchased in transaction (1) using cash. 5. Issued $14,500 in direct materials to the production department. 6. Incurred direct labor costs of $24,500, which were credited to Wages Payable. 7. Paid $22,100 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 8. Applied overhead on the basis of 125 percent of $24,500 direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $10,900. The following balances appeared in the accounts of Steve's Cabinets for April. Beginning Ending
1. Purchased $20,500 of materials on account. 2. Issued $1,250 of supplles from the materials inventory. 3. Purchased $12,100 of materials on account. 4. Pald for the materials purchased in transaction (1) using cash. 5. Issued $14,500 in direct materials to the production department. 6. Incurred direct labor costs of $24,500, which were credited to Wages Payable. 7. Paid $22,100 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 8. Applied overhead on the basis of 125 percent of $24,500 direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $10,900. The following balances appeared in the accounts of Steve's Cabinets for April. Beginning Ending
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.

Transcribed Image Text:1. Purchased $20,500 of materials on account.
2. Issued $1,250 of supplies from the materials inventory.
3. Purchased $12,100 of materials on account.
4. Pald for the materials purchased in transaction (1) using cash.
5. Issued $14,500 in direct materials to the production department.
6. Incurred direct labor costs of $24,500, which were credited to Wages Payable.
7. Paid $22,100 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied overhead on the basis of 125 percent of $24,500 direct labor costs.
9. Recognized depreciation on manufacturing property, plant, and equipment of $10,900.
The following balances appeared in the accounts of Steve's Cabinets for April.
Beginning
$30,990
7,500
34,100
Ending
Materials Inventory
Work-in-Process Inventory
$29,090
54,030
Finished Goods Inventory
Cost of Goods Sold
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.
Complete this question by entering your answers in the tabs below.
Required A
Required B
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.)
View transaction list
Journal entry worksheet
A
B
D
E
G
>
Purchased $20,500 of materials on account.

Transcribed Image Text:Seved
s Exam 2 f
Required A
Required B
Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Work-In-Process Inventory
Materials Inventory
Beg. bal.
Beg. bal,
Finished Goods
End. bal.
End. bal.
Applied Manufacturing Overhead
Manufacturing Overhead Control
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Cash
Accounts Payable
Beg. bal.
Beg. bal.
End. bal
End. bal.
Wages Payable
Accumulated Depreciation-Property, Plant, and Equipment
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Cost of Goods Sold
Finished Goods Inventory
Bog bal.
Finishod Goods
Inventory
Beg. bal.
Goods completed
Transfer to Cost of
Goods Sold
End. bal.
End. bal.
< Requlred A
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