Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,830 of materials on account. 2. Issued $16,890 in direct materials to the production department. 3. Issued $1,260 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,040 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31,100, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,240 on account. 8. Recognized depreciation on manufacturing plant of $35,500. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,500. Estimated overhead for the year was $399,740. The following balances appeared in the inventory accounts of Forest Components for July. Beginning Ending ? $12,530 10,600 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold ? $2,780 ? 7,070 73,900

Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,830 of materials on account. 2. Issued $16,890 in direct materials to the production department. 3. Issued $1,260 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,040 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31,100, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,240 on account. 8. Recognized depreciation on manufacturing plant of $35,500. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,500. Estimated overhead for the year was $399,740. The following balances appeared in the inventory accounts of Forest Components for July. Beginning Ending ? $12,530 10,600 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold ? $2,780 ? 7,070 73,900

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 53P: Cost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold Bisby Company manufactures...

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Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,990 of materials on account. 2. Issued $16,710 in direct materials to the production department. 3. Issued $1,230 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,190 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31,200, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,390 on account. 8. Recognized depreciation on manufacturing plant of $35,800. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,900. Estimated overhead for the year was $418,464. The following balances appeared in the inventory…
Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,890 of materials on account. 2. Issued $16,790 in direct materials to the production department 3. Issued $1,300 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,090 of the materials issued to production in (2) to the materials inventory 6. Direct labor employees earned $32,900, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,260 on account. 8. Recognized depreciation on manufacturing plant of $36,800. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,800. Estimated overhead for the year was $421,756. The following balances appeared in the inventory…
Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $16,880 of materials on account. Issued $16,900 in direct materials to the production department. Issued $1,310 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $2,160 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $31,100, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $17,290 on account. Recognized depreciation on manufacturing plant of $36,600. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,600. Estimated overhead for the year was $430,254. The following balances appeared in the inventory…
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