Edwin Parts, a job shop, recorded the following transactions in May: Purchased $87,200 in materials on account. Issued $3,650 in supplies from the materials inventory to the production department. Issued $43,600 in direct materials to the production department. Paid for the materials purchased in transaction (1). Incurred wage costs of $67,200, which were debited to Payroll, a temporary account. Of this amount, $22,300 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $44,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $34,700 in fringe benefit costs, incurred as a result of the wages paid in (5). This $34,700 was debited to Payroll and credited to Fringe Benefits Payable. Analyzed the Payroll account and determined that 65 percent represented direct labor; 15 percent, indirect manufacturing labor; and 20 percent, administrative and marketing costs. Applied overhead on the basis of 140 percent of direct labor costs. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $41,300. Recognized depreciation of $26,300 on manufacturing property, plant, and equipment. Required: Prepare journal entries to record these transactions. The balances that appeared in the accounts of Edwin Parts are shown as follows.
Edwin Parts, a job shop, recorded the following transactions in May: Purchased $87,200 in materials on account. Issued $3,650 in supplies from the materials inventory to the production department. Issued $43,600 in direct materials to the production department. Paid for the materials purchased in transaction (1). Incurred wage costs of $67,200, which were debited to Payroll, a temporary account. Of this amount, $22,300 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $44,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $34,700 in fringe benefit costs, incurred as a result of the wages paid in (5). This $34,700 was debited to Payroll and credited to Fringe Benefits Payable. Analyzed the Payroll account and determined that 65 percent represented direct labor; 15 percent, indirect manufacturing labor; and 20 percent, administrative and marketing costs. Applied overhead on the basis of 140 percent of direct labor costs. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $41,300. Recognized depreciation of $26,300 on manufacturing property, plant, and equipment. Required: Prepare journal entries to record these transactions. The balances that appeared in the accounts of Edwin Parts are shown as follows.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 10MC: Assigning indirect costs to specific jobs is completed by which of the following? applying the costs...
Related questions
Question
Edwin Parts, a job shop, recorded the following transactions in May:
- Purchased $87,200 in materials on account.
- Issued $3,650 in supplies from the materials inventory to the production department.
- Issued $43,600 in direct materials to the production department.
- Paid for the materials purchased in transaction (1).
- Incurred wage costs of $67,200, which were debited to Payroll, a temporary account. Of this amount, $22,300 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $44,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
- Recognized $34,700 in fringe benefit costs, incurred as a result of the wages paid in (5). This $34,700 was debited to Payroll and credited to
Fringe Benefits Payable. - Analyzed the Payroll account and determined that 65 percent represented direct labor; 15 percent, indirect manufacturing labor; and 20 percent, administrative and marketing costs.
- Applied overhead on the basis of 140 percent of direct labor costs.
- Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $41,300.
- Recognized
depreciation of $26,300 on manufacturing property, plant, and equipment.
Required:
-
Prepare
journal entries to record these transactions. -
The balances that appeared in the accounts of Edwin Parts are shown as follows.
![Prepare T-accounts to show the flow of costs during the period.
Materials Inventory
Beginning Balance
Ending Balance
Debit
Ending Balance
Manufacturing Overhead Control
Debit
Beginning Balance
Credit
Credit
Beginning Balance
Ending Balance
Debit
Ending Balance
Debit
Beginning Balance
Work-in-Process Inventory
Credit
Goods Completed
Applied Manufacturing Overhead
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff00761e5-6ea2-4b64-9c87-d0591240e351%2F10f2102a-061b-4ec7-92b5-a327efb401a8%2Fu71t9sb_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare T-accounts to show the flow of costs during the period.
Materials Inventory
Beginning Balance
Ending Balance
Debit
Ending Balance
Manufacturing Overhead Control
Debit
Beginning Balance
Credit
Credit
Beginning Balance
Ending Balance
Debit
Ending Balance
Debit
Beginning Balance
Work-in-Process Inventory
Credit
Goods Completed
Applied Manufacturing Overhead
Credit
![Beginning Balance
Ending Balance
Debit
Ending Balance
Debit
Beginning Balance
Accounts Payable
Payroll
Credit
Credit
Beginning Balance
Ending Balance
Debit
Ending Balance
Debit
Beginning Balance
Cash
Payroll Taxes Payable
Credit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff00761e5-6ea2-4b64-9c87-d0591240e351%2F10f2102a-061b-4ec7-92b5-a327efb401a8%2Flj1q6wg_processed.png&w=3840&q=75)
Transcribed Image Text:Beginning Balance
Ending Balance
Debit
Ending Balance
Debit
Beginning Balance
Accounts Payable
Payroll
Credit
Credit
Beginning Balance
Ending Balance
Debit
Ending Balance
Debit
Beginning Balance
Cash
Payroll Taxes Payable
Credit
Credit
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT