The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. Purchased $55,400 in materials on account. Issued $3,200 in supplies from the materials inventory to the production department. Paid for the materials purchased in transaction (1). Issued $27,200 in direct materials to the production department. Incurred wage costs of $59,000, which were debited to Payroll, a temporary account. Of this amount, $15,200 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $43,800 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $27,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $27,000 was debited to Payroll and credited to Fringe Benefits Payable. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,100. Applied overhead on the basis of 165 percent of direct labor costs. Recognized depreciation of $18,950 on manufacturing property, plant, and equipment. Required: 1). The balances that appeared in the accounts of Apex Manufacturing are shown as follows. Beginning Ending Materials Inventory $ 58,125 — Work-in-Process Inventory 14,925 — Finished Goods Inventory 63,950 $ 53,200 Cost of Goods Sold — 107,275 Journal Entries : S.no particular debit ($) credit ($) 1 Raw material inventory 55400 Accounts payable 55400 2 Manufacturing OVERHEAD 3200 RAW MATERIAL inventory 3200 3 accounts payable 3200 Cash 3200 4 work in process 27200 RAW MATERIAL inventory 27200 5 payroll expenses 59000 Withhold payroll tax 15200 Cash 43800 6 Fringe benefit expenses 27000 Fringe benefit payable 27000 7 work in process(59000×60%) 35400 Manufacturing OVERHEAD(59000×30%) 17700 Administrative(59000×10%) 5900 Payroll expenses 59000 8 Manufacturing OVERHEAD 34100 Cash 34100 9 work in process(35400+65%) 58410 Manufacturing OVERHEAD 58410 10 Manufacturing OVERHEAD 18950 Accumulated depreciation 18950 Required : Prepare T-accounts to show the flow of costs during the period.

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing. Purchased $55,400 in materials on account. Issued $3,200 in supplies from the materials inventory to the production department. Paid for the materials purchased in transaction (1). Issued $27,200 in direct materials to the production department. Incurred wage costs of $59,000, which were debited to Payroll, a temporary account. Of this amount, $15,200 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $43,800 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $27,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $27,000 was debited to Payroll and credited to Fringe Benefits Payable. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,100. Applied overhead on the basis of 165 percent of direct labor costs. Recognized depreciation of $18,950 on manufacturing property, plant, and equipment. Required: 1). The balances that appeared in the accounts of Apex Manufacturing are shown as follows. Beginning Ending Materials Inventory $ 58,125 — Work-in-Process Inventory 14,925 — Finished Goods Inventory 63,950 $ 53,200 Cost of Goods Sold — 107,275 Journal Entries : S.no particular debit ($) credit ($) 1 Raw material inventory 55400 Accounts payable 55400 2 Manufacturing OVERHEAD 3200 RAW MATERIAL inventory 3200 3 accounts payable 3200 Cash 3200 4 work in process 27200 RAW MATERIAL inventory 27200 5 payroll expenses 59000 Withhold payroll tax 15200 Cash 43800 6 Fringe benefit expenses 27000 Fringe benefit payable 27000 7 work in process(59000×60%) 35400 Manufacturing OVERHEAD(59000×30%) 17700 Administrative(59000×10%) 5900 Payroll expenses 59000 8 Manufacturing OVERHEAD 34100 Cash 34100 9 work in process(35400+65%) 58410 Manufacturing OVERHEAD 58410 10 Manufacturing OVERHEAD 18950 Accumulated depreciation 18950 Required : Prepare T-accounts to show the flow of costs during the period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Problem 7-58 (Algo) Tracing Costs in a Job Company (LO 7-2, 3)

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing.

Purchased $55,400 in materials on account.
Issued $3,200 in supplies from the materials inventory to the production department.
Paid for the materials purchased in transaction (1).
Issued $27,200 in direct materials to the production department.
Incurred wage costs of $59,000, which were debited to Payroll, a temporary account. Of this amount, $15,200 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $43,800 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
Recognized $27,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $27,000 was debited to Payroll and credited to Fringe Benefits Payable.
Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs.
Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $34,100.
Applied overhead on the basis of 165 percent of direct labor costs.
Recognized depreciation of $18,950 on manufacturing property, plant, and equipment.

Required:

1). The balances that appeared in the accounts of Apex Manufacturing are shown as follows.

	Beginning	Ending
Materials Inventory	$	58,125		—
Work-in-Process Inventory		14,925		—
Finished Goods Inventory		63,950	$	53,200
Cost of Goods Sold		—		107,275

Journal Entries :

S.no	particular	debit ($)	credit ($)
1	Raw material inventory	55400
	Accounts payable		55400
2	Manufacturing OVERHEAD	3200
	RAW MATERIAL inventory		3200
3	accounts payable	3200
	Cash		3200
4	work in process	27200
	RAW MATERIAL inventory		27200
5	payroll expenses	59000
	Withhold payroll tax		15200
	Cash		43800
6	Fringe benefit expenses	27000
	Fringe benefit payable		27000
7	work in process(59000×60%)	35400
	Manufacturing OVERHEAD(59000×30%)	17700
	Administrative(59000×10%)	5900
	Payroll expenses		59000
8	Manufacturing OVERHEAD	34100
	Cash		34100
9	work in process(35400+65%)	58410
	Manufacturing OVERHEAD		58410
10	Manufacturing OVERHEAD	18950
	Accumulated depreciation		18950