50.1K

Verified Solution

Link Copied!

Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,810 of materials on account. 2. Issued $16,790 in direct materials to the production department. 3. Issued $1,300 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,080 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,300, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,240 on account. 8. Recognized depreciation on manufacturing plant of $36,600. 9. Applied manufacturing overhead for the month. Forest 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 $435,300. Estimated overhead for the year was $404,829. The following balances appeared in the inventory accounts of Forest Components for July. Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning Ending ? $12,500 ? 10,580 $2,610 7,040 ? 74,300 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. 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. Beg. bal. Transferred to Finished Goods End. bal. 0 End, bal. 0 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg. bal End. bal End. bal. Accounts Payable Cash Beg. bal. Beg bal End. bal. End. bal. 0 Finished Goods Inventory Accumulated Depreciation Property, Plant, and Equipment Beg. bal. Beg. bal. Goods completed Transfer to Cost of Goods Sold End, bal 0 End, bal. 0 Cost of Goods Sold Beg. bal. Goods completed End. bal

Answer & Explanation Solved by verified expert

See Answer