Granger Products recorded the following transactions for the just-completed month. The company had no beginning inventories:

a. $75,000 in raw materials was purchased for cash.

b. $73,000 in raw materials was requisitioned for use in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials.

c. Total wages of $152,000 were incurred and paid. Of this amount, $134,000 was for direct labour and the remainder was for indirect labour.

d. Additional manufacturing overhead costs of $126,000 were incurred and paid.

e. Manufacturing overhead costs of $178,000 were applied to jobs using the company’s pre- determined overhead rate.

f. All of the jobs in process at the end of the month were completed and shipped to customers.

g. If overhead is underapplied in the period, it is closed out to cost of goods sold. If overhead is overapplied in the period, it is allocated among appropriate accounts on the basis of the cost of manufacturing in each account.

Required:

1. Post the above transactions to T-accounts.

2. Determine the cost of goods sold for the period.