The balance in the work-in-process inventory account of Quest, Inc., was $900,000 at the beginning of May. Manufacturing costs for the month are as follows:

Required:

a. Prepare separate journal entries to record the following items. (Hint: Use Figure 2.7 as a guide.)

1. Direct materials placed in production for the month

2. Direct labor used during the month, assuming employees will be paid next month

3. Manufacturing overhead applied for the month

4. Transfer of cost of goods manufactured to finished goods

b. Prepare a T-account for work-in-process inventory and include the beginning balance for May. Post the appropriate items from the journal entries in part a to this account, and calculate the ending balance in work-in-process inventory

Transcribed Image Text:

Direct materials Direct labor Manufacturing overhead applied $ 660,000 $ 340,000 $ 810,000 Cost of goods manufactured $1,960,000