Reference no: EM131817259

Question - Manufacturing Cost Flows with Machine Hours Allocations

On April 1, Telecom Manufacturing Company's beginning balances in manufacturing accounts and finished goods inventory were as follows:

Raw Materials $16,000

Manufacturing Supplies 1,500

Work-in-Process 6,500

Manufacturing Overhead 0

Finished Goods 30,000

During April, Telecom Manufacturing completed the following manufacturing transactions:

1. Purchased raw materials costing $47,000 and manufacturing supplies costing $3,000 on account

2. Requisitioned raw materials costing $45,000 to factory

3. Incurred direct labor costs of $27,000 and indirect labor costs of $4,800

4. Used manufacturing supplies costing $2,500

5. Recorded manufacturing depreciation of $15,000

6. Miscellaneous payables for manufacturing overhead totaled $3,600

7. Applied manufacturing overhead, based on 2,250 machine hours, at a predetermined rate of $10 per machine hour

8. Completed jobs costing $90,000

9. Finished goods costing $100,000 were sold

Required

a. Prepare "T" accounts showing the flow of costs through all manufacturing accounts, Finished Goods Inventory, and Cost of Goods Sold.

b. Calculate the balances at the end of April for Work-in-Process Inventory and Finished Goods Inventory.