Overview of General-Ledger Relationships The Blakely Company uses a joborder cost system. The total debits and credits in certain accounts at yearend are:

DECEMBER 30, 19_6 Total Debits Total Credits Direct-material control $100,000 $ 70,000 Work-in-process control 320,000 305,000 Factory department overhead control 85,000 _ Finished-goods control 325,000 300,000 Cost of goods sold 300,000 _ Factory department overhead applied -- 90,000 Note that “total debits” in the inventory accounts would include beginning inventory balances, if any.

The above accounts do not include the following:

(a) The labor-cost recapitulation for the December 31 working day: direct labor, $5,000, and indirect labor, $1,000.

(b) Miscellaneous factory overhead incurred on December 30 and Decem- ber 31: $1,000. Additional Information Factory overhead has been applied as a percentage of direct labor through December 30.

Direct material purchases during 19_6 were $90,000.

There were no returns to suppliers.

Direct labor costs during 19_6 totaled $150,000, not including the December 31 working day described above.

required 1. Beginning inventories of direct material, work in process, and finished goods. Show T-accounts.

2. Prepare all adjusting and closing journal entries for the above accounts. Assume that all under- or overapplied overhead is closed directly to Cost of Goods Sold.

3. Ending inventories, after adjustments and closing, of direct material, work in process, and finished goods.