Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Textbook Question
Chapter 7, Problem 22E
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:
Required
- a. Prepare
journal entries to record the transactions. - b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
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Fundamentals Of Cost Accounting (6th Edition)
Ch. 7 - What are characteristics of companies that are...Ch. 7 - Direct labor-hours and direct labor dollars are...Ch. 7 - What is the purpose of having two manufacturing...Ch. 7 - How does the accountant know what to record for...Ch. 7 - How is job costing in service organizations (for...Ch. 7 - What are the costs of a product using normal...Ch. 7 - Prob. 7RQCh. 7 - What are three common sources of improprieties in...Ch. 7 - In the context of job costing, what are projects?...Ch. 7 - Why do most companies use normal or standard...
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