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2.1.PNG - Exercise-22 Assigning Costs to Jobs[LO 7-1 2...

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Unformatted text preview: Exercise ?-22 Assigning Costs to Jobs [LO 7-1, 2) Sunset Products manufactures skateboards. The following transactions occurred in March: Purchased $30,000 of materials on account. Issued $1,500 of supplies from the materials inventory. Purchased $372500 of materials on account. Paid for the materials purchased in transaction (1] using cash. Issued $45,000 in direct materials to the production department. Incurred direct labor costs of $3?,500, which were credited to Wages Payable. Paid $42250 cash for utilities, power, equipment maintenance, and other miscellaneous items forthe manufacturing shop. Applied overhead on the basis of 140 percent of direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $1500. EDWT‘JF‘F—“PF-‘JNH The following balances appeared in the accounts of Sunset Products for March: Beginring Ending Materials Inventory $13,500 '5' Work-in-F’rocess Inventory 24,?50 'i' Finished Goods Inventory 9?,500 $ 54,?50 Cost of Goods Sold 120000 I— Required: 3. Prepare joumal entries to record the transactions. {If no entry is required for a transactionrevent, select "No journal entry required" in the first account field.) 1 1 Materials inventory Accounts payable 2 2 Manufacturing overhead control Materials inventory 3 3 Materials inventory Accounts payable 4 4 Accounts payable Cash 5 5 Work—in—process—direct materials Materials inventory E E Work-in-process—direct labor Wages payable ...
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