4.14 (LO 3, 4) Cost flow through T-accounts Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each teams uniform is unique in color and design, Drew uses a job order costing system. On January 1, the T-accounts for some of Drews primary balance sheet accounts were as follows:

Raw Materials Inventory Work in Process Inventory

1/1 59,400 1/1 25,500

Finished Goods Inventory Cash

1/1 34,600 1/1 38,200

Accounts Receivable Accounts Payable

1/1 47,300 1/1 41,900

During the year, the following events occurred:

1. Drew purchased raw materials costing $114,000 on account.

2. Drew used $149,300 of raw materials in production. Of these, 80% were classified as direct materials and 20% as indirect materials. (Drew maintains a single Raw Materials Inventory account.)

3. Drew used 31,200 hours of direct labor. The companys average direct labor rate was $11.00 per hour (credit Wages Payable).

4. The companys indirect labor cost was $168,000 (credit Wages Payable).

5. Other manufacturing overhead costs the company incurred on account totaled $98,400.

6. Drew applied $316,800 in manufacturing overhead.

7. The company completed production of goods costing $795,400.

8. The companys Cost of Goods Sold balance was $801,300 before adjusting for over- or underapplied overhead. 9. Sales revenue was $1,050,000 (all sales were made on account).

10. Drew collected $803,200 from customers. 11. The company paid accounts payable of $201,300.

12. At year-end, all wages earned during the year had been paid.

Required

a. Record the transactions above in the appropriate T-accounts and calculate ending balances. Create new T-accounts if needed.

b. Calculate total manufacturing costs for the year.

c. Calculate cost of goods available for sale during the year.