Boeing Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $17,000 of materials on account. 2. Issued $16,810 in direct materials to the production department. 3. Issued $1,270 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2.150 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,800, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,200 on account. 8. Recognized depreciation on manufacturing plant of $36,400. 9. Applied manufacturing overhead for the month. Boeing 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 $435,900. Estimated overhead for the year was $409,746. The following balances appeared in the inventory accounts of Boeing Components for July. Beginning ↑ Materials Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold $2.610 9 $12,410 10,570 7,080 75,300 Required: a. 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. Complete this question by entering your answers in the tabs below.
Boeing Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $17,000 of materials on account. 2. Issued $16,810 in direct materials to the production department. 3. Issued $1,270 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2.150 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,800, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,200 on account. 8. Recognized depreciation on manufacturing plant of $36,400. 9. Applied manufacturing overhead for the month. Boeing 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 $435,900. Estimated overhead for the year was $409,746. The following balances appeared in the inventory accounts of Boeing Components for July. Beginning ↑ Materials Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold $2.610 9 $12,410 10,570 7,080 75,300 Required: a. 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. Complete this question by entering your answers in the tabs below.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 53P: Cost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold Bisby Company manufactures...
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Transcribed Image Text:Required A Required B
Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Materials Inventory
Work-in-Process Inventory
Beg bal
End, bal
Beg bal
End, bal
Beg bal
Beg bal
End bal
Beg bal
End bal
Manufacturing Overhead Control
Beg bat
Goods completed
End bal
Accumulated Depreciation-Property, Plant, and Equipment
0
Accounts Payable
Accounts Payable
0
Cost of Goods Sold
Beg bal
End, bal
Beg bal
End bal
Beg bat
Beg bal
End bal
Beg bal
Goods completed
End bal
(Required A
Applied Manufacturing Overhead
0
Cash
Cash
0
0
0
Finished Goods Inventory
Transferred to
Finished Goods
Transfer to Cost of
Goods Sold
Transcribed Image Text:Boeing Components makes aircraft parts. The following transactions occurred in July.
1. Purchased $17,000 of materials on account.
2. Issued $16,810 in direct materials to the production department.
3. Issued $1,270 of supplies from the materials inventory.
4. Paid for the materials purchased in transaction (1) using cash.
5. Returned $2.150 of the materials issued to production in (2) to the materials inventory.
6. Direct labor employees earned $32,800, which was paid in cash.
7. Purchased miscellaneous items for the manufacturing plant for $17,200 on account.
8. Recognized depreciation on manufacturing plant of $36,400.
9. Applied manufacturing overhead for the month.
Boeing 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 $435,900. Estimated overhead for the year
was $409,746.
The following balances appeared in the inventory accounts of Boeing Components for July.
Beginning
↑
Materials Inventory
Work in Process Inventory
Finished Goods Inventory
Cost of Goods Sold
$2.610
9
$12,410
10,570
7,080
75,300
Required:
a. 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.
Complete this question by entering your answers in the tabs below.
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