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Forest Components makes eircraft perts. The following transections occurred in July 1 Purchased $16.840 of materials on account 2. Issued $16,770 in direct meterials to the production department. 3. Issued $1240 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cesh. 5. Returned $2.080 of the materials issued to production in (2) to the materials inventory. 6. Direct lebor employees earned $32.000, which was paid in cash, 7. Purchased miscellaneous items for the manufacturing plant for $17.270 on account 8. Recognized depreciation on manufacturing plant of $36,300 9 Applied manufecturing overhead for the month. Forest uses normal costing. It epplies overhend 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 yeer would be $435.200. Estimated overhead for the was $391680 The following balances appeared in the inventory accounts of Forest Components for July

Forest Components makes eircraft perts. The following transections occurred in July 1 Purchased $16.840 of materials on account 2. Issued $16,770 in direct meterials to the production department. 3. Issued $1240 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cesh. 5. Returned $2.080 of the materials issued to production in (2) to the materials inventory. 6. Direct lebor employees earned $32.000, which was paid in cash, 7. Purchased miscellaneous items for the manufacturing plant for $17.270 on account 8. Recognized depreciation on manufacturing plant of $36,300 9 Applied manufecturing overhead for the month. Forest uses normal costing. It epplies overhend 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 yeer would be $435.200. Estimated overhead for the was $391680 The following balances appeared in the inventory accounts of Forest Components for July

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,840 of materials on account 2. Issued $16,770 in direct materials to the production department 3. Issued $1,240 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2.080 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,000, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,270 on account 8. Recognized depreciation on manufacturing plant of $36,300 9. Applied manufacturing overheod for the month. Forest uses normal costing. It opplies 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 $435,200. Estimated overhead for the ye was $391,680 The following balances oppeared in the inventory accounts of Forest Components for July. Beginning Ending $12,560 10,650 Materlals tnventory Mork-in Process Imventory Finished Goods Inventory cost of Goods Sold $2,750 7.100 74, 200 Journal entry worksheet в с D C D E G > A F H Purchased $16,840 of materials on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 1. Record entry Clear entry Vlew general journal Required A Required 8 Show labor and overhead cost flows through T-accounts. Wages Payable Work-In-Process Beg. bal Beg. bal. End. bal. End. bal. Cost of Services Billed Service Overhead Control Beg. bal. Beg. bal. End. bal. End. bal. Applied Service O.H. Beg. bal. End, bal.
Transcribed Image Text:Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,840 of materials on account 2. Issued $16,770 in direct materials to the production department 3. Issued $1,240 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2.080 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,000, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,270 on account 8. Recognized depreciation on manufacturing plant of $36,300 9. Applied manufacturing overheod for the month. Forest uses normal costing. It opplies 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 $435,200. Estimated overhead for the ye was $391,680 The following balances oppeared in the inventory accounts of Forest Components for July. Beginning Ending $12,560 10,650 Materlals tnventory Mork-in Process Imventory Finished Goods Inventory cost of Goods Sold $2,750 7.100 74, 200 Journal entry worksheet в с D C D E G > A F H Purchased $16,840 of materials on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 1. Record entry Clear entry Vlew general journal Required A Required 8 Show labor and overhead cost flows through T-accounts. Wages Payable Work-In-Process Beg. bal Beg. bal. End. bal. End. bal. Cost of Services Billed Service Overhead Control Beg. bal. Beg. bal. End. bal. End. bal. Applied Service O.H. Beg. bal. End, bal.
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