Gen Combo Fundamentals Of Cost Accounting; Connect Access Card
6th Edition
ISBN: 9781260848700
Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 7, Problem 23E
Assigning Costs to Jobs
Sunset Products manufactures skateboards. The following transactions occurred in March:
- 1. Purchased $30,000 of materials.
- 2. Issued $1,500 of supplies from the materials inventory
- 3. Purchased $37,500 of materials.
- 4. Paid for the materials purchased in transaction (1).
- 5. Issued $45,000 in direct materials to the production department.
- 6. Incurred direct labor costs of $37,500, which were credited to Wages Payable.
- 7. Paid $42,250 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.
- 8. Applied
overhead on the basis of 140 percent of direct labor costs. - 9. Recognized
depreciation on manufacturing property, plant, and equipment of $7,500.
The following balances appeared in the accounts of Sunset Products for March:
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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Gen Combo Fundamentals Of Cost Accounting; Connect Access Card
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