Reference no: EM133156022
Question - The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm.
1. Purchased $22,500 of materials on account.
2. Issued $1,450 of supplies from the materials inventory.
3. Purchased $12,500 of materials on account.
4. Paid for the materials purchased in transaction (1) using cash.
5. Issued $14,900 in direct materials to the production department.
6. Incurred direct labor costs of $26,500, which were credited to Wages Payable.
7. Paid $22,500 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied overhead on the basis of 130 percent of $26,500 direct labor costs.
9. Recognized depreciation on manufacturing property, plant, and equipment of $11,300.
The following balances appeared in the accounts of Steve's Cabinets for April.
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Beginning
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Ending
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Materials Inventory
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$31,590
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?
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|
Work-in-Process Inventory
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7,900
|
?
|
|
Finished Goods Inventory
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34,500
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$29,290
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|
Cost of Goods Sold
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|
54,630
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Required - Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.