The following transactions occurred in April at Steve’sCabinets, a custom cabinet firm:
Purchased $25,500 of materials on account.
Issued $1,750 of supplies from the materials inventory.
Purchased $13,100 of materials on account.
Paid for the materials purchased in transaction (1) usingcash.
Issued $15,500 in direct materials to the productiondepartment.
Incurred direct labor costs of $29,500, which were credited toWages Payable.
Paid $23,100 cash for utilities, power, equipment maintenance,and other miscellaneous items for the manufacturing plant.
Applied overhead on the basis of 130 percent of $29,500 directlabor costs.
Recognized depreciation on manufacturing property, plant, andequipment of $11,900.
The following balances appeared in the accounts of Steve’sCabinets for April:
| Beginning | Ending |
| Materials Inventory | $ | 32,490 | | | ? | |
| Work-in-Process Inventory | | 8,500 | | | ? | |
| Finished Goods Inventory | | 35,100 | | $ | 29,590 | |
| Cost of Goods Sold | | | | | 55,530 | |
|
b. Prepare T-accounts to show the flow of costsduring the period from Materials Inventory through Cost of GoodsSold.
Material Inventory
Work-in-process
Manufacturing Overhead Control
Applied overhead
Accounts payable
Cash
Wages payable
Accumulated Depreciation- Property, Plant, and Equipment
Finished Goods Inventory
Cost of goods sold
