Question

Raw materials, beginning balance $18,000 work in process, beginning balance $32,000 finished goods, beginning balance $56,000 transactions: 1. raw materials purchases $65,000 2. raw materials used in production (all direct materials) $73,000 3. direct labor $74,000 4. manufacturing overhead costs incurred $72,000 5. manufacturing overhead applied $89,000 6. cost of units completed and transferred from work in process to finished goods $252,000 7. any overapplied or underapplied manufacturing overhead is closed to cost of goods sold___ ? 8. finished goods are sold $288,000 required: prepare t-accounts for raw materials, work in process, finished goods, and manufacturing overhead, and cost of goods sold. record the beginning balances and each of the transactions listed above. finally, determine the ending balances. a) Prepare t-accounts for raw materials, work in process, finished goods, and manufacturing overhead, and cost of goods sold. Record the beginning balances and each of the transactions listed above. Finally, determine the ending balances.

b) Prepare a summary report of all the transactions.
c) Disregard the transactions and maintain the beginning balances.
d) Record only the sales transactions and leave out the other details.

Answer 1

To prepare the t-accounts for raw materials, work in process, finished goods, and manufacturing overhead, record each transaction and calculate the ending balances. The t-accounts show the changes in each account over time.

Step-by-step explanation:

To prepare the t-accounts for raw materials, work in process, finished goods, and manufacturing overhead, and cost of goods sold, we will record the beginning balances and each of the transactions listed. Finally, we will determine the ending balances.

Raw materials account:

1. Beginning balance: $18,000
2. Purchase of raw materials: $65,000
3. Raw materials used in production: $73,000
4. Ending balance: $18,000 + $65,000 - $73,000 = $10,000

Work in process account:

1. Beginning balance: $32,000
2. Direct labor cost: $74,000
3. Manufacturing overhead costs incurred: $72,000
4. Manufacturing overhead applied: $89,000
5. Cost of units completed and transferred: $252,000
6. Ending balance: $32,000 + $74,000 + $72,000 + $89,000 - $252,000 = $15,000

Finished goods account:

1. Beginning balance: $56,000
2. Cost of units completed and transferred: $252,000
3. Finished goods sold: $288,000
4. Ending balance: $56,000 + $252,000 - $288,000 = $20,000

Manufacturing overhead account:

1. Beginning balance: $0
2. Manufacturing overhead costs incurred: $72,000
3. Manufacturing overhead applied: $89,000
4. Ending balance: $72,000 + $89,000 = $161,000

Cost of goods sold account:

1. Beginning balance: $0
2. Finished goods sold: $288,000
3. Ending balance: $288,000