Reference no: EM132451537

Problem - Assigning Costs to Jobs The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm:

1. Purchased $80,000 of materials.

2. Issued $4,000 of supplies from the materials inventory.

3. Purchased $56,000 of materials.

4. Paid for the materials purchased in transaction (1).

5. Issued $68,000 in direct materials to the production department.

6. Incurred direct labor costs of $100,000, which were credited to Wages Payable.

7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

8. Applied overhead on the basis of 125 percent of $100,000 direct labor costs.

9. Recognized depreciation on manufacturing property, plant, and equipment of $50,000.

The following balances appeared in the accounts of Steve's Cabinets for April:

Beginning Ending Materials Inventory $148,200 ?

Work-in-Process Inventory 33,000 ?

Finished Goods Inventory 166,000 $143,200

Cost of Goods Sold 263,400

Required -

1. Prepare journal entries to record the transactions.

2. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.