The following data (in thousands) summarize the factory operations of the Lewis Manufacturing Co. for the year 2006, its first year in business:

1. Prepare summary journal entries. Omit explanations. For purposes of this problem, combine the items in d as “overhead incurred.”
2. Show the T-accounts for all inventories, cost of goods sold, and factory department overhead. Compute the ending balances of the inventories.
Do not adjust for underapplied or overapplied factory overhead.

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a. Direct materials purchased for cash b. Direct materials issued and used c. Labour used directly on production d1. Indirect labour d2. Amortization of plant and equipment d3. Miscellaneous factory overhead (ordinarily would be detailed) e. Overhead applied: 180% of direct labour f. Cost of production completed g. Cost of goods sold $450 420 125 80 55 40 ? 705 460