4-24 Job costing, journal entries. The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an out- side business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). The following data (in thousands) pertain to 2011: Direct materials and supplies purchased on credit Direct materials used $ 800 710 Indirect materials issued to various production departments Direct manufacturing labor 100 1,300 would be detailed as repairs, photocopying, utilities, etc.) Indirect manufacturing labor incurred by various production departments Depreciation on building and manufacturing equipment Miscellaneous manufacturing overhead* incurred by various production departments (ordinarily Manufacturing overhead allocated at 160% of direct manufacturing labor costs 900 400 550 ? Cost of goods manufactured 4,120 Revenues 8,000 Cost of goods sold (before adjustment for under- or overallocated manufacturing overhead) Inventories, December 31, 2010 (not 2011): 4,020 * The term manufacturing overhead is not used uniformly. Other terms that are often encountered in printing companies include job overhead and shop overhead.