Shown below are the job cost-related accounts for the law firm of De Witte, Ozols, and Morton and their manufacturing equivalents:

Law Firm Accounts _________Manufacturing Firm Accounts

Supplies ............................................... Raw Materials

Salaries Payable .......................... Factory Wages Payable

Operating Overhead ................... Manufacturing Overhead

Work in Process .................................. Work in Process

Cost of Completed Work ................... Cost of Goods Sold

Cost data for the month of March follow.

1. Purchased supplies on account $1,500.

2. Issued supplies of $1,200 (60% direct and 40% indirect).

3. Time cards for the month indicated labour costs of $60,000 (80% direct and 20% indirect).

4. Operating overhead costs incurred for cash totalled $40,000.

5. Operating overhead is applied at a rate of 90% of direct labour cost.

6. Work completed totalled $75,000.

Instructions

(a) Journalize the transactions for March. Omit explanations.

(b) Determine the balance of the Work in Process account. Use a T account.