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Sunset Products manufactures skateboards. The following transactions occurred in March:

1.Purchased $30,000 of materials on account.

2.Issued $1,500 of supplies from the materials inventory.

3.Purchased $37,500 of materials on account.

4.Paid for the materials purchased in transaction (1) using cash.

5.Issued $45,000 in direct materials to the production department.

6.Incurred direct labor costs of $37,500, which were credited to Wages Payable.

7.Paid $42,250 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.

8.Applied overhead on the basis of 140 percent of direct labor costs.

9.Recognized depreciation on manufacturing property, plant, and equipment of $7,500.

The following balances appeared in the accounts of Sunset Products for March:

	Beginning			Ending
Materials Inventory	$	13,500			?
Work-in-Process Inventory		24,750			?
Finished Goods Inventory		97,500		$	54,750
Cost of Goods Sold					120,000

Transation list for journal entries are below:

1. Purchased $30,000 of materials.

2. Issued $1,500 of supplies from the materials inventory.

3. Purchased $37,500 of materials.

4. Paid for the materials purchased in transaction (1).

5. Issued $45,000 in direct materials to the production department.

6. Incurred direct labor costs of $37,500, which were credited to Wages Payable.

7. Paid $42,250 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.

8. Applied overhead on the basis of 140 percent of direct labor costs.

9. Recognized depreciation on manufacturing property, plant, and equipment of $7,500.

Note : = journal entry has been entered

b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Materials Inventory Work-In-Process Inventory Beg. bal. Beg. bal. Finished Goods End. bal. 0 End. bal. 0 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg. bal. End. bal. $0 End. bal. 0 Accounts Payable Cash Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Wages Payable Accumulated Depreciation Property, Plant, and Equipment Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Finished Goods Inventory Cost of Goods Sold Beg. bal. Beg. bal. Goods completed Transfer to Cost of Goods Sold Finished Goods Inventory End. bal. 0 End. bal. 0

Journal entry worksheet Purchased $30,000 of materials. Note: Enter debits before credits. Transactions General Journal Debit Credit Record entry Clear entry View general journal

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