Cost Accumulation: Manufacturing : The following events took place at the Crater Manufacturing Corporation for the current year:

1. Incurred direct labor costs of $72,000.

2. Purchased manufacturing equipment for $63,200.

3. Purchased $101,000 in direct materials.

4. Manufacturing overhead was $116,900.

5. Transferred 60 percent of the direct materials to work in process.

6. Completed work on 80 percent of the work in process and transferred the finished goods to finished goods inventory. Costs are assigned equally across all work in process.

7. Sold 70 percent of the finished goods.

8. Marketing and administrative costs were $70,000.

9. Revenues were $240,000.

There were no beginning balances in any of the inventory accounts. All costs incurred were debited to the appropriate account and credited to Accounts Payable. All revenues were on account.

Required:

a. Prepare journal entries to reflect these events.

b. Show corresponding T-accounts.