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 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: Beginning $ 33,200 6,150 33,500 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Ending ? $ 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 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 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: Beginning $ 33,200 6,150 33,500 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Ending ? $ 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
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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 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
?
2
$ 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.
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