Foley Company uses a job-order costing system. The following data relate to the month of October, the first month of the company%u2019s fiscal year:

a.Raw materials purchased on account, $209,000.

b.Raw materials issued to production, $191,000 (80% direct and 20% indirect).

c.Direct labor cost incurred, $49,000; and indirect labor cost incurred, $20,000.

d.Depreciation recorded on factory equipment, $105,000.

e.Other manufacturing overhead costs incurred during October, $129,000 (credit accounts payable).

f.The company applies manufacturing overhead cost to production on the basis of $4 per machine-hour. A total of 76,100 machine-hours were recorded for October.

g.Production orders costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

h.Production orders that had cost $447,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 50% above cost.

1. Prepare journal entries to record the information given above.

General Journal Debit Credit

a.

b.

c.

d.

e.

f.

g.

h.

2.

Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $33,000. (Record the transactions in the given order.)

Manufacturing Overhead

End. Bal

Work in Process

Beg. Bal

End. Bal