Question

Schoff Corporation has provided the following data for the most recent month:

Raw materials, beginning balance	$	10,600
Work in process, beginning balance	$	22,400
Finished goods, beginning balance	$	52,700

Transactions
(1)	Raw materials purchases	$	75,400
(2)	Raw materials used in production (all direct materials)	$	78,900
(3)	Direct labor	$	72,400
(4)	Manufacturing overhead costs incurred	$	82,300
(5)	Manufacturing overhead applied	$	76,300
(6)	Cost of units completed and transferred from work in process to finished goods	$	231,000
(7)	Any overapplied or underapplied manufacturing overhead is closed to cost of goods sold		?
(8)	Finished goods are sold	$	262,000

   

Required:

Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, Manufacturing Overhead, and Cost of Goods Sold. Record the beginning balances and each of the transactions listed above. Finally, determine the ending balances.

Answer 1

		Raw material Inventory
Beg bal	10600	Raw material used /Work in process	78900
purchase	75400
End bal	7100

		Work in process
Beg Bal	22400	finished goods inventory	231000
Direct material	78900
Direct labor	72400
overhead applied	76300
Ending bal	19000

		Finished goods inventory
Beg bal	52700	sales	262000
work in process	231000
Ending bal	21700

		Manufacturing overhead
Accounts payable/overhead incurred	82300	work in process	76300
		underapplied overhead	6000

		cost of good sold
finished goods inventory	262000