Job costing, journal entries. Duchess Ltd. manufactures and installs kitchen cabinetry. It uses normal job costing with two direct cost categories (direct materials and direct manufac- turing labour) and one indirect cost pool for manufacturing overhead (MOH), applied on the basis of machine hours (MH). At the beginning of the year, the company estimated that it would work 980,000 MH and had budgeted $73,500,000 for MOH. The following data (in millions) pertain to operations for the year 2010:

REQUIRED 1. Prepare general journal entries. Number your entries. Post to T-accounts. What is the ending balance of Work-in-Process Control?
2. Show the journal entry for disposing of overallocated or underallocated manufacturing overhead directly as a year-end write-off to Cost of Goods Sold. Post the entry to T-accounts.LO1

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Materials control (beginning balance), December 31, 2009 Work-in-process control (beginning balance), December 31, 2009 Finished goods control (beginning balance), December 31, 2009 Materials and supplies purchased on account Direct materials used Indirect materials (supplies) issued to various production departments Direct manufacturing labour Indirect manufacturing labour incurred by various departments $ 6.0 1.8 7.2 238 194 27 123 19