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The following transactions occurred in April at Steves Cabinets, a custom cabinet firm. ...

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Accounting

The following transactions occurred in April at Steves Cabinets, a custom cabinet firm.

  1. Purchased $17,500 of materials on account.

  2. Issued $950 of supplies from the materials inventory.

  3. Purchased $11,500 of materials on account.

  4. Paid for the materials purchased in transaction (1) using cash.

  5. Issued $13,900 in direct materials to the production department.

  6. Incurred direct labor costs of $21,500, which were credited to Wages Payable.

  7. Paid $21,500 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

  8. Applied overhead on the basis of 130 percent of $21,500 direct labor costs.

  9. Recognized depreciation on manufacturing property, plant, and equipment of $10,300.

The following balances appeared in the accounts of Steves Cabinets for April.

Beginning Ending
Materials Inventory $ 30,090 ?
Work-in-Process Inventory 6,900 ?
Finished Goods Inventory 33,500 $ 28,790
Cost of Goods Sold 53,130

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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