Raw materials $ 24,000 Work-in-Process 73,000 Finished goods 27,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 45,000 machine-hours and incur $180,000 in manufacturing overhead cost. The following transactions were recorded for the year:
A. Raw materials purchased, $416,000.
B. Raw materials were requisitioned for use in production, $420,000 ($380,000 direct and $40,000 indirect).
C. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and admin. salaries, $212,000.
D. Selling costs, $141,000.
E. Factory utility costs, $20,000.
F. Depreciation for thw year was $81,000 of which $73,000 is related to factory operations and $8,000 is related to selling, general, and admin. activities.
G. manufacturing overhead was applied to jobs. The actual level of activity for the year was $48,000 machine hours.
H. the cost of goods manufactured for the year was $1,004,00.
I. sales for the year totaled $1,416,000 and the costs on the job cost sheets of the goods that were sold totaled $989,000.
J. The balance in the manufacturing overhead account was closed out to cost of goods sold.
Required:
Prepare the appropriate journal entry for each of the items above (a. through j). You can assume that all transactions with employees, customers, and suppliers, were conducted in cash.