Barker Products is a job shop. The following events 1. Purchased $13,500 of materials on account. 2. Issued $15,000 in direct materials to the production department. 3. Purchased $11,500 of materials on account. 4. Issued $925 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $23,000, which were credited to Wages Payable. 8. Issued $1,325 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100. The following balances appeared in the accounts of Barker Products for September: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $ 33,200 6,150 33,500 Ending September: ? ? $ 30,500 54,600 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.

Barker Products is a job shop. The following events 1. Purchased $13,500 of materials on account. 2. Issued $15,000 in direct materials to the production department. 3. Purchased $11,500 of materials on account. 4. Issued $925 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 6. Paid $19,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $23,000, which were credited to Wages Payable. 8. Issued $1,325 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $23,000 direct labor costs. 10. Recognized depreciation on manufacturing property, plant, and equipment of $12,100. The following balances appeared in the accounts of Barker Products for September: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning $ 33,200 6,150 33,500 Ending September: ? ? $ 30,500 54,600 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PA: The following data summarize the operations during the year. Prepare a journal entry for each...

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An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
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