EXERCISE $5-7$ Prepare T$-$Accounts $[$LO$4,$ LO$6]$

Granger Products recorded the following transactions for the just$-$completed month. The company had no beginning inventories:

a$.$ $$75,000$ in raw materials was purchased for cash.

b$.$ $$73,000$ in raw materials was requisitioned for use in production. Of this amount, $$67,000$ was for direct materials and the remainder was for indirect materials.

c$.$ Total wages of $$152,000$ were incurred and paid. Of this amount, $$134,000$ was for direct labour and the remainder was for indirect labour.

d$.$ Additional manufacturing overhead costs of $$126,000$ were incurred and paid.

e$.$ Manufacturing overhead costs of $$178,000$ were applied to jobs using the company's predetermined overhead rate.

f$.$ All of the jobs in process at the end of the month were completed and shipped to customers. $g.$ If overhead is underapplied in the period, it is closed out to cost of goods sold. If overhead is overapplied in the period, it is allocated among appropriate accounts on the basis of the cost of manufacturing in each account.

Required:

Post the above transactions to T$-$accounts.

Determine the cost of goods sold for the period.