Barker Products is a job shop. The following events occurred in September:Purchased $13,800 of materials on account.Issued $15,300 in direct materials to the production department.Purchased $11,800 of materials on account.Issued $940 of supplies from the materials inventory.Paid for the materials purchased in transaction (1).Paid $20,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.Incurred direct labor costs of $23,600, which were credited to Wages Payable.Issued $1,340 of supplies from the materials inventory.Applied overhead on the basis of 85 percent of $23,600 direct labor costs.Recognized depreciation on manufacturing property, plant, and equipment of $12,400.The following balances appeared in the accounts of Barker Products for September: BeginningEndingMaterials Inventory$ 34,100?Question markWork-in-Process Inventory6,180?Question markFinished Goods Inventory34,400$ 31,100Cost of Goods Sold 56,100Required:Prepare journal entries to record the transactions.Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Let's begin with the journal entries for each of the transactions, followed by preparing…

Answered: Barker Products is a job shop. The…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Barker Products is a job shop. The following events occurred in September:

Purchased $13,800 of materials on account.
Issued $15,300 in direct materials to the production department.
Purchased $11,800 of materials on account.
Issued $940 of supplies from the materials inventory.
Paid for the materials purchased in transaction (1).
Paid $20,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
Incurred direct labor costs of $23,600, which were credited to Wages Payable.
Issued $1,340 of supplies from the materials inventory.
Applied overhead on the basis of 85 percent of $23,600 direct labor costs.
Recognized depreciation on manufacturing property, plant, and equipment of $12,400.

The following balances appeared in the accounts of Barker Products for September:

Prepare journal entries to record the transactions.
Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

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