The balance in Reid Company’s Work in Process Inventory account was \($300,000\) at the beginning of March and \($320,000\) at the end of March. Manufacturing costs for the month follow.

(1) Direct materials (from the schedule of raw materials placed in production), \($40,000

(2)\) Direct labor, \($70,000

(3)\) Manufacturing overhead applied, \($200,000\) Required

a. Prepare a schedule of cost of goods manufactured for the month of March.

b. Using the information in the schedule of cost of goods manufactured, prepare separate journal entries to record the items below. (Hint: Use Exhibit 2.9 as a guide.)

(1) Direct materials placed in production for the month.

(2) Direct labor used during the month, assuming employees will be paid next month.

(3) Manufacturing overhead applied for the month.

(4) The transfer of cost of goods manufactured to finished goods.

c. Prepare a T account for Work in Process Inventory and include the beginning balance for March. Post the appropriate items from the journal entries in part b to this account, and calculate the ending balance in Work in Process Inventory.