Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of custom tools: 1. Purchased $17,000 of materials. 2. Issued $16,800 in direct materials to the production department. 3. Issued $1,200 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1). 5. Returned $2,200 of the materials issued to production in (2) to the material inventory. 6. Direct labor employees earned $31,000, which was paid in cash. 7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 8. Recognized depreciation on manufacturing plant of $35,000. 9. Applied manufacturing overhead for the month. Tarnsdale 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 $434,000. Estimated overhead for the year was $403,620. The following balances appeared in the inventory accounts of Tarnsdale Fabricators for January: Materials Inventory... Work-in-Process Inventory. Finished Goods Inventory Cost of Goods Sold... Beginning $2,600 Ending $12,600 10,500 $ 7,100 74,500 Required 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. Воти ата between #10k # #20k Hints: 1) Bag Raw Inv & Bag WIP are both between $lok & *20k 2) Predetermined O/H is < $1.00 3) Cost of Goods Manufactured is between $70k $ $90k 4) Cast of Goods Transforced from Finisbad t 2005 in *.

The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of custom tools: 1. Purchased $17,000 of materials. 2. Issued $16,800 in direct materials to the production department. 3. Issued $1,200 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1). 5. Returned $2,200 of the materials issued to production in (2) to the material inventory. 6. Direct labor employees earned $31,000, which was paid in cash. 7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 8. Recognized depreciation on manufacturing plant of $35,000. 9. Applied manufacturing overhead for the month. Tarnsdale 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 $434,000. Estimated overhead for the year was $403,620. The following balances appeared in the inventory accounts of Tarnsdale Fabricators for January: Materials Inventory... Work-in-Process Inventory. Finished Goods Inventory Cost of Goods Sold... Beginning $2,600 Ending $12,600 10,500 $ 7,100 74,500 Required 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. Воти ата between #10k # #20k Hints: 1) Bag Raw Inv & Bag WIP are both between $lok & *20k 2) Predetermined O/H is < $1.00 3) Cost of Goods Manufactured is between $70k $ $90k 4) Cast of Goods Transforced from Finisbad t 2005 in *.

Managerial Accounting: The Cornerstone of Business Decision-Making
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...
See similar textbooks
icon
Related questions
Question

answer in text form with all workings and steps , computation , explanation clearly and completely

The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of custom tools: 1. Purchased $17,000 of materials. 2. Issued $16,800 in direct materials to the production department. 3. Issued $1,200 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1). 5. Returned $2,200 of the materials issued to production in (2) to the material inventory. 6. Direct labor employees earned $31,000, which was paid in cash. 7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 8. Recognized depreciation on manufacturing plant of $35,000. 9. Applied manufacturing overhead for the month. Tarnsdale 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 $434,000. Estimated overhead for the year was $403,620. The following balances appeared in the inventory accounts of Tarnsdale Fabricators for January: Materials Inventory.. Work-in-Process Inventory.. Finished Goods Inventory Cost of Goods Sold. Beginning ? ? $2,600 ? Ending $12,600 10,500 $ 7,100 74,500 oztat Required 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. Both are between #lok # #20k Hints: 1) Beg Raw Inv & Bag WIP are both between 2) Predetermined 0/4 is < $1.00 3) Cost of Goods Manufactured is between $70k $ $90k 4) Cost of Goods Transferred from Finished to COGS is #74,500. $10k $ $20k
Transcribed Image Text:The following transactions occurred in January at Tarnsdale Fabricators, a manufacturer of custom tools: 1. Purchased $17,000 of materials. 2. Issued $16,800 in direct materials to the production department. 3. Issued $1,200 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1). 5. Returned $2,200 of the materials issued to production in (2) to the material inventory. 6. Direct labor employees earned $31,000, which was paid in cash. 7. Paid $17,200 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 8. Recognized depreciation on manufacturing plant of $35,000. 9. Applied manufacturing overhead for the month. Tarnsdale 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 $434,000. Estimated overhead for the year was $403,620. The following balances appeared in the inventory accounts of Tarnsdale Fabricators for January: Materials Inventory.. Work-in-Process Inventory.. Finished Goods Inventory Cost of Goods Sold. Beginning ? ? $2,600 ? Ending $12,600 10,500 $ 7,100 74,500 oztat Required 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. Both are between #lok # #20k Hints: 1) Beg Raw Inv & Bag WIP are both between 2) Predetermined 0/4 is < $1.00 3) Cost of Goods Manufactured is between $70k $ $90k 4) Cost of Goods Transferred from Finished to COGS is #74,500. $10k $ $20k
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS