Barker Products is a job shop. The following events 1. Purchased $13,500 of materials on account. 2. Issued $15,000 in direct materials to the production department. 3. Purchased $11,500 of materials on account. 4. Issued $925 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $23,000, which were credited to Wages Payable. 8. Issued $1,325 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100. The following balances appeared in the accounts of Barker Products for September: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $ 33,200 6,150 33,500 Ending September: ? ? $ 30,500 54,600 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.
Barker Products is a job shop. The following events 1. Purchased $13,500 of materials on account. 2. Issued $15,000 in direct materials to the production department. 3. Purchased $11,500 of materials on account. 4. Issued $925 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $23,000, which were credited to Wages Payable. 8. Issued $1,325 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100. The following balances appeared in the accounts of Barker Products for September: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $ 33,200 6,150 33,500 Ending September: ? ? $ 30,500 54,600 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Barker Products: September Transactions Overview
**Barker Products is a job shop. The following events occurred in September:**
1. Purchased $13,500 of materials on account.
2. Issued $15,000 in direct materials to the production department.
3. Purchased $11,500 of materials on account.
4. Issued $925 of supplies from the materials inventory.
5. Paid for the materials purchased in transaction (1).
6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
7. Incurred direct labor costs of $23,000, which were credited to Wages Payable.
8. Issued $1,325 of supplies from materials inventory.
9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs.
10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100.
**The following balances appeared in the accounts of Barker Products for September:**
| Account | Beginning | Ending |
|--------------------------------|-----------|---------|
| Materials Inventory | $33,200 | ? |
| Work-in-Process Inventory | 6,150 | ? |
| Finished Goods Inventory | 33,500 | 30,500 |
| Cost of Goods Sold | ? | 54,600 |
#### 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.**
### Explanation of the Table
The table provided summarizes the balances in various inventory and cost accounts at the beginning and end of the period. These accounts include:
- **Materials Inventory**: Represents raw materials on hand.
- **Work-in-Process Inventory**: Represents costs of partially completed goods.
- **Finished Goods Inventory**: Represents costs of completed goods not yet sold.
- **Cost of Goods Sold**: Represents the accumulated total costs associated with goods that have been sold during the period.
### Instructions for Journal Entries and T-Accounts
- Journal entries should detail each transaction as it records the flow of costs through the various accounts.
- T-accounts will visually represent the flow of costs, tracing materials from acquisition through to their conversion into finished goods and eventual sale.
These exercises will help in understanding the cost accounting practices within a manufacturing environment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bcae66a-f265-4775-a305-e5fe053be2d4%2F98f793df-9b19-4549-b99e-1d7d63d7422b%2Fi6s0r9n_processed.png&w=3840&q=75)
Transcribed Image Text:### Barker Products: September Transactions Overview
**Barker Products is a job shop. The following events occurred in September:**
1. Purchased $13,500 of materials on account.
2. Issued $15,000 in direct materials to the production department.
3. Purchased $11,500 of materials on account.
4. Issued $925 of supplies from the materials inventory.
5. Paid for the materials purchased in transaction (1).
6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
7. Incurred direct labor costs of $23,000, which were credited to Wages Payable.
8. Issued $1,325 of supplies from materials inventory.
9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs.
10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100.
**The following balances appeared in the accounts of Barker Products for September:**
| Account | Beginning | Ending |
|--------------------------------|-----------|---------|
| Materials Inventory | $33,200 | ? |
| Work-in-Process Inventory | 6,150 | ? |
| Finished Goods Inventory | 33,500 | 30,500 |
| Cost of Goods Sold | ? | 54,600 |
#### 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.**
### Explanation of the Table
The table provided summarizes the balances in various inventory and cost accounts at the beginning and end of the period. These accounts include:
- **Materials Inventory**: Represents raw materials on hand.
- **Work-in-Process Inventory**: Represents costs of partially completed goods.
- **Finished Goods Inventory**: Represents costs of completed goods not yet sold.
- **Cost of Goods Sold**: Represents the accumulated total costs associated with goods that have been sold during the period.
### Instructions for Journal Entries and T-Accounts
- Journal entries should detail each transaction as it records the flow of costs through the various accounts.
- T-accounts will visually represent the flow of costs, tracing materials from acquisition through to their conversion into finished goods and eventual sale.
These exercises will help in understanding the cost accounting practices within a manufacturing environment.
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