Barker Products is a job shop. The following events occurred in September: 1. Purchased $14,000 of materials on account. 2. Issued $15,500 in direct materials to the production department. 3. Purchased $12,000 of materials on account. 4. Issued $950 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $20,200 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $24,000, which were credited to Wages Payable. 8. Issued $1,350 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $24,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,600. The following balances appeared in the accounts of Barker Products for September: Beginning $ 34,700 6,200 35,000 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Ending ? ? $ 31,500 57,100 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 $14,000 of materials on account. 2. Issued $15,500 in direct materials to the production department. 3. Purchased $12,000 of materials on account. 4. Issued $950 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $20,200 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $24,000, which were credited to Wages Payable. 8. Issued $1,350 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $24,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,600. The following balances appeared in the accounts of Barker Products for September: Beginning $ 34,700 6,200 35,000 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Ending ? ? $ 31,500 57,100 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Barker Products is a job shop. The following events occurred in September: 1. Purchased $14,100 of materials on account. 2. Issued $15,600 in direct materials to the production department. 3. Purchased $12,100 of materials on account. 4. Issued $955 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 5. Paid $20,300 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $24,200, which were credited to Wages Payable. 3. Issued $1,355 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $24,200 direct labor costs. 3. Recognized depreciation on manufacturing property, plant, and equipment of $12,700. The following balances appeared in the accounts of Barker Products for September: Ending Materials Inventory Work-in-Process Inventory. Finished Goods Inventory Cost of Goods Sold Beginning $ 35,000 6,210 35,300 ? ? $…
Barker Products is a job shop. The following events occurred in September: 1. Purchased $14,500 of materials on account. 2. Issued $16,000 in direct materials to the production department. 3. Purchased $12,500 of materials on account. 4. Issued $975 of supplies from the materials Inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $20,700 cash for utilities, power, equipment maintenance, and other miscellaneous Items for the manufacturing plant. 7. Incurred direct labor costs of $25,000, which were credited to Wages Payable. 8. Issued $1,375 of supplies from the materials Inventory. 9. Applied overhead on the basis of 85 percent of $25,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $13,100. 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 Required: Beginning $ 36,200 6,250 36,500 Ending…
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 ? ? $…
Barker Products is a job shop. The following events occurred in September: Purchased $14,500 of materials on account. Issued $16,000 in direct materials to the production department. Purchased $12,500 of materials on account. Issued $975 of supplies from the materials inventory. Paid for the materials purchased in transaction (1). Paid $20,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. Incurred direct labor costs of $25,000, which were credited to Wages Payable. Issued $1,375 of supplies from the materials inventory. Applied overhead on the basis of 85 percent of $25,000 direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $13,100. The following balances appeared in the accounts of Barker Products for September Beginning Ending Materials Inventory $ 36,200 ? Work-in-Process Inventory 6,250 ? Finished Goods Inventory 36,500 $ 32,500…
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Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,890 of materials on account. 2. Issued $16,790 in direct materials to the production department 3. Issued $1,300 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,090 of the materials issued to production in (2) to the materials inventory 6. Direct labor employees earned $32,900, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,260 on account. 8. Recognized depreciation on manufacturing plant of $36,800. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,800. Estimated overhead for the year was $421,756. The following balances appeared in the inventory…
Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,990 of materials on account. 2. Issued $16,710 in direct materials to the production department. 3. Issued $1,230 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,190 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31,200, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,390 on account. 8. Recognized depreciation on manufacturing plant of $35,800. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,900. Estimated overhead for the year was $418,464. The following balances appeared in the inventory…
Elmira Tool and Die makes machine tools to order. The following transactions occurred in October: 1. Issued $4,300 of supplies from the materials inventory. 2. Purchased $49,500 of materials. 3. Issued $45,100 in direct materials to the production department. 4. Paid $45,300 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 5. Returned $8,400 of the materials issued to production in (3) to the materials inventory. 6. Direct labor employees earned $79,500, 50% of which was paid in cash and the remainder credited to Wages Payable. 7. Purchased $19,500 of materials on account. 8. Recognized depreciation on manufacturing plant of $93,500. 9. Paid for the materials purchased in transaction (2) 10. Applied manufacturing overhead for the month. Elmira uses normal costing. It applies overhead on the basis of materials costs using an annual, predetermined rate. At the beginning of the year, management estimated that materials costs for the year would be…
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Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $16,880 of materials on account. Issued $16,900 in direct materials to the production department. Issued $1,310 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $2,160 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $31,100, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $17,290 on account. Recognized depreciation on manufacturing plant of $36,600. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,600. Estimated overhead for the year was $430,254. The following balances appeared in the inventory…
Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $16,830 of materials on account. Issued $16,720 in direct materials to the production department. Issued $1,290 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $2,040 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $31,000, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $17,330 on account. Recognized depreciation on manufacturing plant of $35,300. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,100. Estimated overhead for the year was $417,696. The following balances appeared in the inventory…