T Accounts Showing Flow of Cost. The Baton Rouge Chemical Company had the following inventories on 1 answer below »

T Accounts Showing Flow of Cost. The Baton Rouge Chemical Company had the following inventories on September 1

Raw materials

$40,000

Work in process — materials

$15,000

Finished goods

25,000

Work in process — labor

18,000

Work in process — factory overhead

1 3,500

During the month of September the cost of materials purchased was $100,000, direct labor cost incurred was $90,000, and factory overhead applicable to production was 75% of the direct labor cost. The September 30 inventories were:

Raw materials

$30,000

Work in process — materials

$12,000

Finished goods

47,000

Work in process — labor

20,000

Work in process — factory overhead

15,000

Required: Using three accounts for work in process, prepare T accounts showing the flow of the cost of goods manufactured and sold.