During 1998, Danzi Company purchased materials costing $152,600.

Materials requisitioned for jobs cost $98,000, and indirect materials costing $42,000 were charged to Factory Overhead. Factory payrolls were $212,000 with income taxes withheld of $43,000 and FICA taxes withheld of $17,000. Indirect labor of $71,000 included in the payrolls was charged to Factory Overhead. All other labor was direct labor charged to the jobs. Factory overhead was applied to the jobs at the rate of $8 per machine hour. During the year, the company operated at 45,000 machine hours and incurred factory overhead costs of $259,000 (in addition to the indirect materials and indirect labor previously stated). Depreciation of $47,000 was included in the $259,000 of factory overhead costs.

Products costing $465,000 were completed during the year, and the cost of goods sold was $480,000. At the beginning of the year, Danzi had the following balances:

Required:
Use T-accounts to show the flow of costs for the 1998 transactions of Danzi Company.
Close out Factory Overhead to Cost of Goods Sold.

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Materials Work in Process Finished Goods. $27,000 48,000 34,000