(.Journal entries) The following transactions were incurred by O’Brien Com¬ pany during April 2006:

1. Direct material issued to production, $350,000.

2. Direct labor cost paid, 70,000 hours at $16 per hour.

3. Indirect labor cost accrued, 15,500 hours at $10 per hour.

4. Depreciation on factory assets recorded, $75,400.

5. Supervisors’ salaries paid, $28,000.

6. Indirect materials issued to production, $19,200.

7. Goods costing $1,680,000 were completed and transferred to finished goods.

a. Prepare journal entries for these transactions using a single overhead ac¬ count for both variable and fixed overhead and assuming that the Raw Material Inventory account contains only direct material.

b. If Work in Process Inventory had a beginning balance of $107,560, what is its ending balance?

LO1.