Job Cost Journal Entries Holiday Manufacturing had the following inventories at December 31, 2018, the end of its fiscal year:

During January 2019, the following transactions occurred: 

1. Purchased materials on account, \($126,000\). 

2. Requisitioned direct materials of \($110,000\) and indirect materials of \($20,000\). 

3. Incurred wages payable, \($61,000\). 

4. Assigned total wages payable, of which \($11,000\) was considered indirect labor. 

5. Incurred other manufacturing overhead, \($32,800\). (Credit Accounts Payable.) 

6. Applied manufacturing overhead on the basis of 120% of direct labor costs. 

7. Determined completed production, \($206,000\). Use this information to determine the amount of WIP transferred to finished goods inventory. 

8. Determined cost of goods sold, \($203,000\). 

Use this information to determine the reduction to finished goods inventory. 

Required

a. Prepare general journal entries to record these transactions.

b. If the above transactions covered a full year's operations, prepare a journal entry to dispose of the overhead account balance. Assume that the balance is significant. Also assume that the following accounts contained the indicated amounts of manufacturing overhead applied during 2019:

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Work-in-process inventory Finished goods... Cost of goods sold $ 6,000 4,000 50,000