1.

Prepare journal entries to record the transactions for the year. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.

Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (dont forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account.

3-a.	Is Manufacturing Overhead underapplied or overapplied for the year?

3-b.	Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4.	Prepare an income statement for the year.

Regal Millwork Ltd. produces reproductions of antique residential mouldings at a plant located in Manchester, England. Since there are hundreds of products, some of which are made only to order, the company uses a job-order costing system. On July 1, the start of the company's fiscal year, inventory account balances were as follows Raw Materials Work in Process Finished Goods 10,000 4,000 8,000 The company applies overhead cost to jobs on the basis of machine-hours. For the fiscal year starting July 1, it was estimated that the plant would operate 45,000 machine-hours and incur 99,000 in manufacturing overhead cost. During the year, the following transactions were completed a. Raw materials were purchased on account: 160,000. b. Raw materials were requisitioned for use in production: 140,000 (materials costing 120,000 were chargeable directly to jobs; the remaining materials were indirect) c. Costs for employee services were incurred as follows Direct labour Indirect labour Sales commissions Administrative salaries 90,000 60,000 20,000 50,000 d. Prepaid insurance expired during the year: 18,000 (13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities) e. Utility costs were incurred in the factory: 10,000. f. Advertising costs were incurred: 15,000 g. Depreciation was recorded on equipment: 25,000 (20,000 of this amount was on equipment used in factory operations, the remaining 5,000 was on equipment used in selling and administrative activities) h. Manufacturing overhead cost was applied to jobs: ? (the company recorded 50,000 machine-hours of operating time during the year) i. Goods that had cost 310,000 to manufacture according to their job cost sheets were completed j. Sales (all on account) to customers during the year totalled 498,000. These goods cost 308,000 to manufacture according to their job cost sheets Required