Eppich Corporation has provided the following data for the most recent month:
| Raw materials, beginning balance | $ | 21,000 | |||||
| Work in process, beginning balance | $ | 33,000 | |||||
| Finished Goods, beginning balance | $ | 51,000 | |||||
Transactions:
| (1) | Raw materials purchases | $ | 79,000 |
| (2) | Raw materials used in production (all direct materials) | $ | 78,000 |
| (3) | Direct labor | $ | 53,000 |
| (4) | Manufacturing overhead costs incurred | $ | 93,000 |
| (5) | Manufacturing overhead applied | $ | 73,000 |
| (6) | Cost of units completed and transferred from Work in Process to Finished Goods |
$ | 190,000 |
| (7) | Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold |
? | |
| (8) | Finished goods are sold | $ | 222,000 |
Required:
Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.
| Raw material Inventory | |||
| Bal . 1/1 | 21000 | Work in progress | 78000 |
| Purchase | 79000 | ||
| 100000 | 78000 | ||
| Bal . 1/31 | 22000 | ||
| Work in progress inventory | |||
| Bal . 1/1 | 33000 | Finished goods | 190000 |
| Direct material | 78000 | ||
| Direct labor | 53000 | ||
| Manufacturing overheads | 73000 | ||
| 237000 | 190000 | ||
| Bal . 1/31 | 47000 | ||
| Finshed goods inventory | |||
| Bal . 1/1 | 51000 | Cost of goods sold | 222000 |
| Work in progress | 190000 | ||
| 241000 | 222000 | ||
| Bal 1/31 | 19000 | ||
| Manufacturing overheads | |||
| Actual overheads | 93000 | Work in progress | 73000 |
| 93000 | 73000 | ||
| Bal 1/31 | 20000 | ||
| Cost of goods sold | |||
| Finished goods | 222000 | ||
| Unapplied overheads | 20000 | ||
| Total | 242000 | ||
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