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1.1.PNG - Exercise 7-21 Assigning Costs to Jobs(LO 7-1 2...

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Unformatted text preview: Exercise 7-21 Assigning Costs to Jobs (LO 7-1, 2) The following transactions occurred in April at Steve’s Cabinets, a custom cabinet Iirm: Purchased $80,000 of materials on account. Issued $4,000 of supplies item the materials inventory. Purchased $56,000 of materials on account. Paid forthe materials purchased in transaction (1) using cash. Issued $68,000 in direct materials to the production department. Incurred direct labor costs of $100,000, which were credited to Wages Payable. Paid $105,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. . Applied overhead on the basis of 125 percent of $100,000 direct labor costs. . Recognized depreciation on manufacturing property, plant, and equipment of $50,000. wmwwuewwe The following balances appeared in the accounts of Steve 's Cabinets for April: Beginring Ending Materials Inventory $1 48, 200 ? Work—in—Process Inventory 33,000 ? Finished Goods Inventory 186,000 $143,200 Cost of Goods Sold 253,400 [— Required: 3. Prepare journal entries to record the transactions. iii no entry is required fora transactionievent, select "No journal entry required" in the first account field.) 1 1 Materials inventory v sopoo _ Accounts payable v - 80,000 2 2 Manufactu ri rig overhead c ontrol V 4 ,000 _ Materials inventory v - 11,000 3 3 Materials inventory v 56,000 Accounts payable v 55,000 Cash V 80,000 5 5 Work-in-proc ass—direct mate rials v 88 ,000 Materials inventory v 4 4 Accounts payable v 80,000 - 58,000 ...
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