Exercise $7-24($Algo$)$ Assigning Costs to Jobs $($LO $7-1)$

Barker Products is a job shop. The following events occurred in September:

Purchased $$14,500$ of materials on account.

Issued $$16,000$ in direct materials to the production department.

Purchased $$12,500$ of materials on account.

Issued $$975$ of supplies from the materials inventory.

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

Paid $$20,700$ cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

Incurred direct labor costs of $$25,000,$ which were credited to Wages Payable.

Issued $$1,375$ of supplies from the materials inventory.

Applied overhead on the basis of $85$ percent of $$25,000$ direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $$13,100.$

The following balances appeared in the accounts of Barker Products for September:

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.

Complete this question by entering your answers in the tabs below.

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

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$1$ of $1$

Next Wages Payable

Applied Manufacturing Overhead

Finished Goods Inventory

Cost of Goods Sold

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$1$ of $1$

NextBarker Products is a job shop. The following events occurred in September:

Purchased $$14,500$ of materials on account.

Issued $$16,000$ in direct materials to the production department.

Purchased $$12,500$ of materials on account.

Issued $$975$ of supplies from the materials inventory.

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

Paid $$20,700$ cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

Incurred direct labor costs of $$25,000,$ which were credited to Wages Payable.

Issued $$1,375$ of supplies from the materials inventory.

Applied overhead on the basis of $85$ percent of $$25,000$ direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $$13,100.$

The following balances appeared in the accounts of Barker Products for September:

Beginning Ending

Materials Inventory $ $36,200?$Question mark

Work$-$in$-$Process Inventory $6,250?$Question mark

Finished Goods Inventory $36,500$ $ $32,500$

Cost of Goods Sold $59,600$

Required:

Prepare journal entries to record the transactions.

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