Holiday Manufacturing had the following inventories at December 31, 2015, the end of its fiscal year:

Material inventory .................................. 19,000

Work in process inventory ...................... 20,000

Finished goods inventory ........................ 13,000

During January 2016, the following transaction occurred:

1. Purchased materials on account, $126,000.

2. Requisitioned direct material of $110,000 and indirect material 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 11% 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 accounts balance. Assume that the balance is significant. Also assume that the following accounts contained the indicated amounts of manufacturing overhead applied during 2016:

Work in process inventory ............................ $ 6,000

Finished goods ................................................ 4,000

Cost of goods sold ........................................... 45,000