Job costing, journal entries. Donnell Transport assembles prestige manufactured homes. Its job costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $30 per machine-hour in 2009). The following data (in millions) pertain to operations for 2009:

1. Prepare an overview diagram of Donnell Transport’s job-costing system.

2. Prepare journal entries. Number your entries. Post to T-accounts. What is the ending balance of Work-in-Process Control?

3. Show the journal entry for disposing of under- or over allocated manufacturing overhead directly as a year-end write-off to Cost of Goods Sold. Post the entry to T-accounts.

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$ 12 Materials Control, beginning balance, January 1, 2009 Work-in-Process Control, beginning balance, January 1, 2009 Finished Goods Control, beginning balance, January 1, 2009 Materials and supplies purchased on credit 150 Direct materials used 145 Indirect materials (supplies) issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments Depreciation on plant and manufacturing equipment Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) Manufacturing overhead allocated, 2,100,000 actual machine-hours Cost of goods manufactured 10 06 30 19 294 Revenues 400 Cost of goods sold 292.