Donald Transport assembles prestige manufactured homes. Its job costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $31 per machine-hour in 2014). The following data (in millions) show operation costs for 2014:

1. Prepare an overview diagram of Donald Transport’s job-costing system. 

2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control? 

3. Show the journal entry for disposing of under- or over allocated manufacturing overhead directly as a year-end write off to Cost of Goods Sold. Post the entry to T-accounts. 

4. How did Donald Transport perform in 2014?

$18 Materials Control, beginning balance, January 1, 2014 Work-in-Process Control, beginning balance, January 1, 2014 Finished Goods Control, beginning balance, January 1, 2014 Materials and supplies purchased on credit 9 10 154 Direct materials used 152 Indirect materials (supplies) issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments 19 96 34 Depreciation on plant and manufacturing equipment Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) Manufacturing overhead allocated, 3,000,000 actual machine-hours Cost of goods manufactured 28 13 298 Revenues 410 Cost of goods sold 294