JOURNAL ENTRIES, T ACCOUNTS Kaycee, Inc., manufactures brown paper grocery bags. During the month of May, the following occurred:
a. Purchased materials on account for $23,175.
b. Requisitioned materials totaling $19,000 for use in production.
c. Incurred direct labor payroll for the month of $17,850, with an average wage of $8.50 per hour.
d. Incurred and paid actual overhead of $15,500.
e. Charged manufacturing overhead to production at the rate of $7 per direct labor hour.
f. Transferred completed units costing $36,085 to finished goods.
g. Sold bags costing $30,000 on account for $36,000. Beginning balances as of May 1 were:
|
Materials |
$ 5,170 |
|
Work in Process Inventory |
11,200 |
|
Finished Goods Inventory |
2,630 |
Required:
1. Prepare the journal entries for the preceding events.
2. Calculate the ending balances of:
a. Materials Inventory
b. Work in Process Inventory
c. Overhead Control
d. Finished Goods Inventory