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The following transactions occurred in April at Steves Cabinets, a custom cabinet firm.
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Purchased $80,000 of materials on account.
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Issued $4,000 of supplies from the materials inventory.
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Purchased $56,000 of materials on account.
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Paid for the materials purchased in transaction (1) using cash.
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Issued $68,000 in direct materials to the production department.
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Incurred direct labor costs of $100,000, which were credited to Wages Payable.
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Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
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Applied overhead on the basis of 125 percent of $100,000 direct labor costs.
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Recognized depreciation on manufacturing property, plant, and equipment of $50,000.
The following balances appeared in the accounts of Steves Cabinets for April.
| | Beginning | Ending |
| Materials Inventory | $ | 148,200 | | | ? | |
| Work-in-Process Inventory | | 33,000 | | | ? | |
| Finished Goods Inventory | | 166,000 | | $ | 143,200 | |
| Cost of Goods Sold | | | | | 263,400 | |
| |
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.
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