Unifying Concepts: Job Order Costing and the Cost of Goods Manufactured Schedule Delta Manufacturing Company applies manufacturing overhead to jobs on the basis of machine hours. The 2009 estimates of manufacturing overhead and machine hours were:

Delta had the following transactions for October 2009:

a. Raw materials of $420,000 were purchased on account.

b. Raw materials of $400,000 were issued to production; 90% were direct materials, and the balance was indirect materials.

c. Direct labor costs incurred, $300,000.

d. Indirect labor costs incurred, $55,000.

e. Selling, general, and administrative expenses incurred, $150,000.

f. Manufacturing overhead costs incurred:

g. Machine hours for the month, 30,400.
h. Eighty-five percent of Work-in-Process Inventory was transferred to Finished Goods Inventory. Assume that beginning Work-in-Process Inventory amounted to $95,000.
i. All finished goods are sold for cash at a 20% markup over costs of production. (There is no beginning or ending finished goods inventory.)
j. Over- or underapplied manufacturing overhead is charged to Cost of Goods Sold, and the overhead account is closed.
Required:
1. Prepare journal entries to reflect the flow of costs incurred during October.
2. Assuming that beginning raw materials inventory was $16,000 and beginning work-inprocess inventory was $95,000, prepare a Cost of Goods Manufactured schedule for October 2009.

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Manufacturing overhead $1,825,000 Machine hours 365,000