At the beginning of 2017, Dexter Company estimated that it would incur $220,000 of manufacturing overhead cost during 2017 and use 20,000 direct labor hours. On January 1, 2017, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $60,000, $-0-, and $115,000, respectively.

Required:

Using the following account letters, indicate the journal entries to record the following for 2017. For example, the payment of an account payable would be: A, C. List the debit letter(s) first. Also indicate the entry amounts for 2, 3, 5, 6 and 7.

1. Purchased materials on account, $425,000.

2. Of the $425,000 total dollar value of materials used, $390,000 represented direct material.

3. Determined total factory labor, $228,000 (19,000 hrs. @$12/hr.). Of the factory labor, 16,000 were direct labor hours.

4. Incurred actual manufacturing overhead other than those items already recorded, $100,000. (Credit Accounts Payable and Accumulated Depreciation)

5. Applied manufacturing overhead based on direct labor hours to production.

6. Ending inventory of work in process was $75,000. Record the cost of goods manufactured.

7. Transferred the balance in Manufacturing Overhead to the appropriate account.

A. Accounts Payable

B. Accumulated Depreciation

C. Cash

D. Cost of Goods Sold

E. Finished Goods Inventory

F. Materials Inventory

G. Manufacturing Overhead

H. Wages Payable

I. Work in Process Inventory