Barker Products is a job shop.

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 $13,400 of materials on account.
2. Issued $14,900 in direct materials to the production department.
3. Purchased $11,400 of materials on account.
4. Issued $920 of supplies from the materials Inventory.
5. Pald for the materials purchased in transaction (1).
6. Pald $19,600 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
7. Incurred direct labor costs of $22,800, which were credited to Wages Payable.
8. Issued $1,320 of supplies from the materials Inventory.
9. Applied overhead on the basis of 85 percent of $22,800 direct labor costs.
10. Recognized depreciation on manufacturing property, plant, and equipment of $12,000.
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
$ 32,900
6,140
33,200
Ending
View transaction list
$ 30,300
54,100
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.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare journal entries to record the transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Transcribed Image Text:Barker Products is a job shop. The following events occurred in September: 1. Purchased $13,400 of materials on account. 2. Issued $14,900 in direct materials to the production department. 3. Purchased $11,400 of materials on account. 4. Issued $920 of supplies from the materials Inventory. 5. Pald for the materials purchased in transaction (1). 6. Pald $19,600 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $22,800, which were credited to Wages Payable. 8. Issued $1,320 of supplies from the materials Inventory. 9. Applied overhead on the basis of 85 percent of $22,800 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,000. 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 $ 32,900 6,140 33,200 Ending View transaction list $ 30,300 54,100 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record the transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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