The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of custom tools: 1. Purchased $17,000 of materials. 2. Issued $16,800 in direct materials to the production department. 3. Issued $1,200 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1). 5. Returned $2,200 of the materials issued to production in (2) to the material inventory. 6. Direct labor employees earned $31,000, which was paid in cash. 7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 8. Recognized depreciation on manufacturing plant of $35,000. 9. Applied manufacturing overhead for the month. Tarnsdale uses normal costing. It applies 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 $434,000. Estimated overhead for the year was $403,620. The following balances appeared in the inventory accounts of Tarnsdale Fabricators for January: Materials Inventory... Work-in-Process Inventory. Finished Goods Inventory Cost of Goods Sold... Beginning $2,600 Ending $12,600 10,500 $ 7,100 74,500 Required Prepare journal entries-to-record-these-transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Воти ата between #10k # #20k Hints: 1) Bag Raw Inv & Bag WIP are both between $lok & *20k 2) Predetermined O/H is < $1.00 3) Cost of Goods Manufactured is between $70k $ $90k 4) Cast of Goods Transforced from Finisbad t 2005 in *.
The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of custom tools: 1. Purchased $17,000 of materials. 2. Issued $16,800 in direct materials to the production department. 3. Issued $1,200 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1). 5. Returned $2,200 of the materials issued to production in (2) to the material inventory. 6. Direct labor employees earned $31,000, which was paid in cash. 7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 8. Recognized depreciation on manufacturing plant of $35,000. 9. Applied manufacturing overhead for the month. Tarnsdale uses normal costing. It applies 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 $434,000. Estimated overhead for the year was $403,620. The following balances appeared in the inventory accounts of Tarnsdale Fabricators for January: Materials Inventory... Work-in-Process Inventory. Finished Goods Inventory Cost of Goods Sold... Beginning $2,600 Ending $12,600 10,500 $ 7,100 74,500 Required Prepare journal entries-to-record-these-transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Воти ата between #10k # #20k Hints: 1) Bag Raw Inv & Bag WIP are both between $lok & *20k 2) Predetermined O/H is < $1.00 3) Cost of Goods Manufactured is between $70k $ $90k 4) Cast of Goods Transforced from Finisbad t 2005 in *.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of
custom tools:
1. Purchased $17,000 of materials.
2. Issued $16,800 in direct materials to the production department.
3. Issued $1,200 of supplies from the materials inventory.
4. Paid for the materials purchased in transaction (1).
5. Returned $2,200 of the materials issued to production in (2) to the material inventory.
6. Direct labor employees earned $31,000, which was paid in cash.
7.
Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was
credited.
8. Recognized depreciation on manufacturing plant of $35,000.
9. Applied manufacturing overhead for the month.
Tarnsdale uses normal costing. It applies 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 $434,000. Estimated overhead for the year was $403,620.
The following balances appeared in the inventory accounts of Tarnsdale Fabricators for
January:
Materials Inventory..
Work-in-Process Inventory..
Finished Goods Inventory
Cost of Goods Sold.
Beginning
?
?
$2,600
?
Ending
$12,600
10,500
$ 7,100
74,500
oztat
Required
Prepare journal entries to record-these-transactions.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory
through Cost of Goods Sold.
Both are
between
#lok # #20k
Hints:
1) Beg Raw Inv & Bag WIP are both between
2)
Predetermined 0/4 is < $1.00
3) Cost of Goods Manufactured is between $70k $ $90k
4) Cost of Goods Transferred from Finished to COGS is #74,500.
$10k $ $20k
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