Directions: Prepare the entries for the following transactions.

1. Labor was incurred as follows:
   • Direct labor of $217,000
   • Indirect labor of $300,000
   • Accountants salaries $100,000
2. Recorded depreciation as follows:
   • On computer used by line manager in plant of $10,000
   • On computer used by the accountant $5,000

c. Allocated Manufacturing overhead in the amount of $500,000erm

d. In the text they used the term control after most of the accounts you used. The term can be ignored in your answers because it is implied. What does this term mean. (use paragraph form in your answer not bullets.) Also explain.

e. Where does manufacturing overhead fit in the published financial statements (explain)?