norma~ full eosting and journal entries Simple Manufaeturing Company manufaetures and distributes a single produet.

It records manufaeturing eosts using a normal eosting system with overhead applied on the basis of direet labor hours, using a normal volume of 20,000 direet labor hours. In the most recent period, Simple expeeted to ineur $100,000 of manufaeturing overhead. Any under or over-applied overhead is closed to eost of goods sold.

There was no work-in-proeess inventory at the beginning of the period.

a] Give the journal entries for the following events:

issuance of $50,000 of direet materials into the facto ry for processing;

$270,000 of direet labor eost (30,000 hours), all paid immediately; and

$125,000 of manufacturing overhead, all paid in eash.

b] Give the journal entries to alloeate overhead to work in process, to transfer all work in process to finished goods and to elose the overhead account. (Assume the transactions above eapture all aetivity in manufaeturing overhead.)

AppendixLO1