Purchased $29,500 of materials on account. Issued $1,950 of supplies from the materials inventory. Purchased $26,900 of materials on account. Paid for the materials purchased in transaction (1) using cash.
Sunset Products manufactures skateboards. The following transactions occurred in March.
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Purchased $29,500 of materials on account.
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Issued $1,950 of supplies from the materials inventory.
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Purchased $26,900 of materials on account.
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Paid for the materials purchased in transaction (1) using cash.
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Issued $31,900 in direct materials to the production department.
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Incurred direct labor costs of $34,500, which were credited to Wages Payable.
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Paid $23,400 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.
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Applied
overhead on the basis of 110 percent of direct labor costs. -
Recognized
depreciation on manufacturing property, plant, and equipment of $6,900.
The following balances appeared in the accounts of Sunset Products for March.
| Beginning | Ending | |||||
| Materials Inventory | $ | 11,850 | ? | |||
| Work-in-Process Inventory | 18,400 | ? | ||||
| Finished Goods Inventory | 66,900 | $ | 38,400 | |||
| Cost of Goods Sold | 74,900 | |||||
Required:
Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
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