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a . Raw materials purchased on account, $ 2 1 0 , 0 0 0 . b . Raw materials used in production, $ 1

a. Raw materials purchased on account, $210,000.
b. Raw materials used in production, $190,000( $178,000 direct materials and $12,000 indirect materials).
c. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000.
d. Depreciation recorded on factory equipment, $40,000.
e. Other manufacturing overhead costs accrued during October, $70,000
f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of
30,000 machine-hours were used in October.
g. Jobs costing $520,000 were completed and transferred to Finished Goods.
h. Jobs costing $480,000 were shipped to customers. These jobs were sold on account at 25% above cost.
Required:
Prepare journal entries to record the transactions given above.
Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account.
Compute the ending balance in each account, assuming Work in Process has a beginning balance of $42,000.
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Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in
each account, assuming that Work in Process has a beginning balance of $42,000.
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