Details of inventories are: LO1 Finished goods inventory: $32,500 Job 101 Job 102 Work in process inventory:

Direct materials: 500 units of A @ $5.

$2,500 200 units of B @ $3.

$ 600 Direct labor: 500 hours @$4.

2,000 200 hours @$5.

1,000 Factory overhead applied at the rate of $2 per direct laborhour.

1,000 400 Total.

$5,500

$2,000 Materials inventory: $22,000 During January, the following transactions were completed:

(a) Materials were purchased on account for $114,520.

(b) Payroll totaling $110,000 was accrued.

(c) Payroll was distributed as follows: Job 101, 2,500 direct labor hours @ $8; Job 102, 4,000 direct labor hours @ $10; Job 103, 3,000 direct labor hours @ $6; indirect labor, $12,000; marketing and administrative salaries, $20,000.

(d) Materials were issued as follows: $51,600 to Job 101; $42,000 to Job 102; $14,575 to Job 103. Indirect mate¬ rials costing $7,520 were issued.

(e) Factory overhead was applied to Jobs 101, 102, and 103 at a rate of $4.50 per direct labor hour.

(f) Jobs 101 and 102 were completed and immediately sold on account for $120,000 and $135,000, respectively.

(g) After allowing a 5% cash discount, a net amount of $247,000 was collected on accounts receivable.

(h) Marketing and administrative expenses (other than salaries) paid during the month amounted to $15,000. Miscellaneous factory overhead of $22,680 was paid in cash. Depreciation on factory machinery was $2,000.

(i) Payments on account, other than payrolls paid, amounted to $85,000.

(j) Applied Factory Overhead is closed to Factory Overhead Control. The over- or underapplied overhead is then closed to Cost of Goods Sold.

Required:

(1) Open general ledger accounts and record January 1 balances.

(2) Journalize the January transactions.

(3) Post January transactions to the general ledger and to a subsidiary ledger for work in process. In the sub¬ sidiary ledger, use a T account for each job rather than a job cost sheet, and enter the January 1 balances for each job.

(4) Prepare a trial balance of the general ledger as of January 31; Work in Process must reconcile to its sub¬ sidiary ledger.

(5) Prepare a cost of goods sold statement for January.