Module 2 Written Assessment Saved Help Save & Exit Submit 1 Edwin Parts, a job shop, recorded the following transactions in May: 1. Purchased $87,460 in materials on account. 2. Issued $3780 in supplies from the materials inventory to the production department 3. Issued $43.860 in direct materials to the production department. 75 4_Paid for the materials purchased in transaction (1) o 5. Incurred wage costs of $67720, which were debited to Payroll, a temporary account. Of this amount, $22 560 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $45,160 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 6. Recognized $34,960 in fringe benefit costs, incurred as a result of the wages paid in (5). This $34,960 was debited to Payroll and D credited to Fringe Benefits Payable References 7. Analyzed the Payroll account and determined that 65 percent represented direct labor; 15 percent, indirect manufacturing labor; and 20 percent, administrative and marketing costs. 8. Applied overhead on the basis of 140 percent of direct labor costs. 9. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $41.560. 10. Recognized depreciation of $26,560 on manufacturing property, plant, and equipment. Required: a. Prepare journal entries to record these transactions. b. The balances that appeared in the accounts of Edwin Parts are shown as follows. Beginning Ending Materials Inventory $ 99,160 ? Work-in-Process Inventory 25,660 2 Finished Goods Inventory 102,860 $ 93,460 Cost of Goods Sold - 157,408 Prepare T-accounts to show the flow of costs during the period. Complete this question by entering your answers in the tabs below. Required B Prepare journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required\" in the first account field. Journal entry worksheet Next @ Prey 10f1 View transaction list A Record materials purchases of $87,460 on account. f B Record the issuance of 3,780 in supplies from the 7 materials inventory. C Record issue of 543,860 direct materials to production f department. N, O Record payment made for $87,460 purchase on account. E Record wage cost incurred 67,720 of which $22,560 was f payable as taxes. F Record entry to recognize fringe benefit cost of 534,960, 7 Record entry to recognize fringe benefit cost of 534,960. Record payroll cost of which 85% represents direct |abor, 15% indirect manufacturing labor and 20% administrative and marketing costs. Record application of manufacturing overhead at 140% of direct labor cost. Record payment of $41,560 for utilities, maintenance, etc. Record depreciation of 326,560 on manufacturing plant and equipment. N N