Question

Eppich Corporation has provided the following data for the most recent month: Raw materials, beginning balance Work in process, beginning balance Finished Goods, beginning balance $25,000 $34,600 $52,600 Transactions: 1:41:43 $ 78, 200 $ 78,800 $ 54,600 $ 97,000 $ 74,600 (1) Raw materials purchases (2) Raw materials used in production (all direct materials) (3) Direct labor (4) Manufacturing overhead costs incurred (5) Manufacturing overhead applied (6) Cost of units completed and transferred from Work in Process to Finished Goods (7) Any overapplied or underapplied manufacturing overhead is closed to cost of Goods Sold (8) Finished goods are sold $190,000 $224,400 Required: Complete the following T-accounts by recording the beginning balances and each of the transaction

Answer 1

1 Raw Materials   

Particulars	Amount	Particulars	Amount
Beginning Balance	$25,000	Direct Material	$78,800
(1)Raw Materials Purchased	$78,200
Ending Balance	$24,400

2. Work in Process   

Particulars	Amount	Particulars	Amount
Beginning Balance	$34,600	(6)Transfer to Finished Goods	$190,000
(2)Direct Material	$78,800
(3)Direct Labot	$54,600
(5)Manufacturing Overheads Applied	$74,600
Ending Balance	$52,600

3. Finished Goods

Particulars	Amount	Particulars	Amount
Beginning Balance	$52,600	(8)Cost of Goods Sold	$224,400
(6)Transfer From WIP	$190,000
Ending Balance	$18,200

4 Manufacturing Overhead

Particulars	Amount	Particulars	Amount
(4)Manufacturing Overheads Incurred	$97,000	(5)Manufacturing Overhead applied	$74,600
Manufacturing Overhead Underapplied	$22,400	(7)Cost of Goods Sold	$22,400

5. Cost of Goods Sold

(7)Manufacturing Overhead Underapplied	$22,400
(8)Cost of Goods Sold	$224,400
	$246,800