Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,990 of materials on account. 2. Issued $16,710 in direct materials to the production department. 3. Issued $1,230 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,190 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31,200, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,390 on account. 8. Recognized depreciation on manufacturing plant of $35,800. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,900. Estimated overhead for the year was $418,464. The following balances appeared in the inventory accounts of Forest Components for July. Beginning Ending $12,440 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold 10,530 6,910 73,600 $2,640 Required: a. Prepare journal entries to record these transactions.
Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,990 of materials on account. 2. Issued $16,710 in direct materials to the production department. 3. Issued $1,230 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,190 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31,200, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,390 on account. 8. Recognized depreciation on manufacturing plant of $35,800. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,900. Estimated overhead for the year was $418,464. The following balances appeared in the inventory accounts of Forest Components for July. Beginning Ending $12,440 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold 10,530 6,910 73,600 $2,640 Required: a. Prepare journal entries to record these transactions.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 12PA: The following data summarize the operations during the year. Prepare a journal entry for each...
Related questions
Question
Transcribed Image Text:Forest Components makes aircraft parts. The following transactions occurred in July.
1. Purchased $16,990 of materials on account.
2. Issued $16,710 in direct materials to the production department.
3. Issued $1,230 of supplies from the materials inventory.
4. Paid for the materials purchased in transaction (1) using cash.
5. Returned $2,190 of the materials issued to production in (2) to the materials inventory.
6. Direct labor employees earned $31,200, which was paid in cash.
7. Purchased miscellaneous items for the manufacturing plant for $17,390 on account.
8. Recognized depreciation on manufacturing plant of $35,800.
9. Applied manufacturing overhead for the month.
Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the
beginning of the year, management estimated that direct labor costs for the year would be $435,900. Estimated overhead for the year
was $418,464.
The following balances appeared in the inventory accounts of Forest Components for July.
Beginning Ending
$12,440
Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
?
10,530
6,910
73,600
$2,640
Cost of Goods Sold
Required:
a. Prepare journal entries to record these transactions.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning