(Journal entries) Advanced T. Davis Rags makes evening dresses. The fol¬ lowing information has been gathered from the company records for 2006, the first year of company operations. Work in Process Inventory at the end of 2006 was $6l,000.

The company’s gross profit rate for the year was 35 percent.

a. Compute the cost of goods sold for 2006.

b. What was the total cost of goods manufactured for 2006?

c. If net income was $100,600, what were total selling and administrative expenses for the year?

d. Prepare journal entries to record the flow of costs for the year, assuming the company uses a perpetual inventory system.LO1. 

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Direct material purchased on account Direct material issued to production $740,000 596,000 430,000 Direct labor payroll accrued Indirect labor payroll accrued Factory insurance expired 124,000 4,000 Factory utilities paid Depreciation on factory equipment recorded. 28,600 43,400 Factory rent paid Sales on account 168,000 1,908,000