Journalizing and posting transactions. The Haynes Corporation manufactures a single product. On October 1, 19X8, the company’s inventory accounts showed the following balances:

Raw materials $52,300 Work in Process 50,500 Finished Goods 73,000 Transactions that occurred during the month of October are summarized below.

a. Raw materials were purchased on credit for $100,380.

b. Direct materials costing $88,120 and indirect materials costing $9,380 were used during the month.

c. Factory wages earned during October totaled $67,200. (Credit Salaries and Wages Payable 202, payroll taxes should be ignored.)

d. Direct labor costs for the month amounted to $49,000 and indirect labor costs amounted to $18,200.

Additional factory costs incurred are as follows:

e. Employer’s payroll taxes, $4,610 (credit Taxes Payable 212).

f. Machinery repairs, $1,720 (credit Vouchers Payable 202).
g. Depreciation for the month on the factory building, $3,080; on the factory equipment, $5,600.
h. Factory insurance expired, $590.
i. Property taxes accrued, $2,378.
j. Manufacturing overhead chargeable to work in process is estimated to be Stl!
k. Jobs completed and transferred to finished goods cost $186,755.
l. Cost of goods sold during the month, $197,015. Price of goods sold (on credit)
during the month, $262,555. (Prepare two entries.)
Instructions 1. Open accounts for Raw Materials 121, Work in Process 122, Finished Goods 126, Sales 401, Cost of Goods Sold 415, Factory Payroll Clearing 500, and Manufacturing Overhead Control 501.
2. Enter the beginning balances in the three inventory accounts.
3. Record the transactions in general journal form. Date the entries October 31.
4. Post to the accounts provided. (No accounts are provided for some items.)
5. Prepare a schedule of manufacturing overhead costs showing the underapplied or overapplied overhead and the overhead applied to production, and prepare a statement of cost of goods manufactured.
6. Prepare an income statement for the month, assuming that selling expenses totaled $30,880 and general and administrative expenses totaled $13,600.