On April 1, Telecom Manufacturing Company's beginning balances in manufacturing accounts and finished goods inventory were as follows: Raw Materials $16,000 Manufacturing Supplies 1,500 Work-in-Process 6,500 Manufacturing Overhead 0 Finished Goods 30,000 During April, Telecom Manufacturing completed the following manufacturing transactions: 1. Purchased raw materials costing $47,000 and manufacturing supplies costing $3,000 on account. (Single Transaction) 2. Requisitioned raw materials costing $45,000 to the factory. 3. Incurred direct labor costs of $27,000 and indirect labor costs of $4,800. 4. Used manufacturing supplies costing $2,500. 5. Recorded manufacturing depreciation of $15,000. 6. Miscellaneous payables for manufacturing overhead totaled $3,600. 7. Applied manufacturing overhead, based on 2,250 machine hours, at a predetermined rate of $10 per machine hour. 8. Completed jobs costing $90,000. 9. Finished goods costing $100,000 were sold. (a) Prepare "T" accounts showing the flow of costs through all manufacturing accounts, Finished Goods Inventory, and Cost of Goods Sold.
(b) Calculate the balances at the end of April for Work-in-Process Inventory and Finished Goods Inventory. Enter transactions in the T-accounts in the order they appear using the first available answer box on the appropriate side.

                        Raw Materials

                       Debit        Credit

                     16,000

#1 Purchase   47,000

#2 requisitions                45,000

Ending           18,000

              Manufacturing  Supplies

                       Debit        Credit

                       1,500

#1 Purchase    3,000

#4 Used                          2,500

Ending             2,000

             WIP - Inventory

                          Debit        Credit

                          6,500

#2 Direct M      45,000

#3 Direct  L       27,000

#7 Applied MO 22,500

#Complete Jobs               90,000

Ending               11,000

Manufacturing Overhead

                          Debit        Credit

                              0

#3 Indirect  L       4,800

#4 Indirect M      2,500

#5 depreciation   15,000

#6 Miscellaneous 3,600

#7 Applied                         22,500

Ending               3,400

Adjustment

for underapplied                   3,400

Balance                  0

Finished Goods

                          Debit        Credit

                       30,000

#8 Completed 90,000

#9 Sold                          100,000

Ending            20,000

Cost of Good Sold

                          Debit        Credit

#9 Sold                 100,000

Adjustment

for underapplied MO 3,400

ending                   103,400

(b)

WIP Ending Balances 11,000

Finished Goods         20,000

Explanation:

The origin of the cost is displatyed on the credit whilethe destination in the dbeit

For example:

when we complete a job we credit work in process inventory (origin) and debit finished good (destination of the cost)

when we transfer the requisitioned materials we credit raw materials (origin) and debit WIP-inventory (destination)

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