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 Beginning $ 36,200 6,250 36,500 Ending ? $ 32,500 59,600 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Debit Beginning balance Ending balance Credit Work-in-Process Inventory Debit Credit Beginning balance Finished Goods Ending balance Manufacturing Overhead Control Applied Manufacturing Overhead Debit Credit Debit Credit Beginning balance Beginning balance Ending balance
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 Beginning $ 36,200 6,250 36,500 Ending ? $ 32,500 59,600 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Debit Beginning balance Ending balance Credit Work-in-Process Inventory Debit Credit Beginning balance Finished Goods Ending balance Manufacturing Overhead Control Applied Manufacturing Overhead Debit Credit Debit Credit Beginning balance Beginning balance Ending balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
?
$ 32,500
59,600
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 T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Materials Inventory
Debit
Beginning balance
Ending balance
Credit
Work-in-Process Inventory
Debit
Credit
Beginning balance
Finished Goods
Ending balance
0
Manufacturing Overhead Control
Applied Manufacturing Overhead
Debit
Credit
Debit
Credit
Beginning balance
Beginning balance
Ending balance
0
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