1. Prepare a cost of goods manufacturing statement, a cost of goods sold statement and a manufacturing income statement for August 2017 for ACE Manufacturing, based on the following information:

Raw materials purchases $500,000

Sales $4,000,000

Factory depreciation $20,000

Beginning finished goods inventory $200,000

Indirect materials $20,000

Ending work in process inventory $100,000

Direct labor $300,000

Selling, General and Administrative expenses $1,000,000

Indirect materials $20,000

Beginning raw materials inventory $200,000

Factory insurance $10,000

Ending finished goods inventory $300,000

Factory utilities $30,000

Ending Raw materials inventory $100,000 Beginning raw materials inventory $200,000.

2. Doras Designer Dresses uses the job order costing system.

4-1 Katy Perry orders a silk evening gown

4-2 Factory requests 20 yards from the silk from the warehouse. The silk costs $200 per yard.

4-3/ 4-7: The factory works on the dress:

Direct labor 30 hours at $100 per hour.

Manufacturing overhead is allocated based on direct labor hours. The predetermined overhead rate is $40 per direct labor hour.

4-8 The gown is finished and transferred to the showroom

4-9: The gown is delivered to Katy Perry and she is billed $40,000.

Required: Prepare the appropriate journal entries and post them to the ledger.