Explore BrainMass

Explore BrainMass

    Record information in the three inventory accounts of a manufacturing company

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Real Manufacturing Company provided the following information for the year 2014:

    Purchases—direct materials $180,000
    Direct materials used in production $192,000
    Direct labor $235,000
    Indirect materials $23,500
    Indirect labor $9,500
    Depreciation on factory plant & equipment $12,000
    Plant utilities & insurance $135,000
    Cost of goods manufactured $591,000
    Cost of goods sold $598,500

    Please refer to the T-accounts in the attachment, which show the beginning balances for the year. Record the transactions for the year in each of the three inventory accounts and then show the ending balance in each T-account.

    © BrainMass Inc. brainmass.com June 4, 2020, 4:37 am ad1c9bdddf


    Solution Summary

    Show the entries in the three inventory accounts of a manufacturing company - Direct Material Inventory, Work in Process Inventory, Finished Goods Inventory