ABC Co. recorded the following transactions for the just completed month. The company had no beginning inventories.

a) $157,000 in raw materials were purchased on account.

b) $135,000 in raw materials were requisitioned for use in production. Of this amount, $122,000 was for direct materials and the remainder was for indirect materials.

c) Total labor wages of $165,000 were incurred and paid. Of this amount, $145,000 was for direct labor and the remainder was for indirect labor.

d) Additional manufacturing overhead costs of $155,500 were incurred and paid.

e) Manufacturing overhead costs of $190,000 were applied to jobs using the companys predetermined overhead rate.

f) Of the jobs in progress at the end of the month, $425,500 were completed and shipped to customers.

g) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:

1. Post the above transactions to T-accounts (only to the T-accounts shown below). Label each entry.

Raw Material, Work in Process, Manufacturing O/H, Finished Goods, Cost of Goods Sold

2. Determine the cost of goods sold for the period.