follows:

During the year, the following transactions were completed:

a$.$ Raw materlals were purchased on account, $$214,000.$

b$.$ Raw materlals were issued from the storeroom for use in production, $$234,000(80\%$ direct and $20\%$ Indirect$).$

c$.$ Employee salarles and wages were accrued as follows: direct labour, $$234,000$; Indirect labour, $$93,500$; selling and adminlstrative

salarles, $$164,000.$

d$.$ Utility costs were incurred In the factory. $$88,500$

e$.$ Advertising costs were Incurred, $$83,500.$

f$.$ Prepald insurance explred during the year, $$27,400(75\%$ related to factory operations, and $25\%$ related to selling and administrative

activiles$).$

g$.$ Depreclation was recorded, $$184,000(80\%$ related to factory assets, and $20\%$ related to selling and administrative assets$).$

h$.$ Manufacturing overhead was applied to jobs at the rate of $150\%$ of direct labour cost.

I. Goods that cost $$824,100$ to manufacture according to thelr job cost sheets were transferred to the finished goods warehouse.

sheets was $$795,000.$

Required:

Prepare journal entrles to record the transactions for the year. $($If no entry is required for a particular transaction, select $"$No journal

entry required" in the first account field.$)$

Prepare T$-$accounts for raw materlals, work In process, finished goods, manufacturing overhead and cost of goods sold. Post the

approprlate parts of your Journal entrles to these T$-$accounts. Compute the ending balance In each account. $($Do not forget to enter the

beginning balances in the Inventory accounts.$).$

$3-$a$.$ Is manufacturing overhead underapplied or overapplied for the year?

$3-$b$.$ Prepare a journal entry to close this balance to cost of goods sold. $($If no entry is required for a particular transaction, select $"$No

journal entry required" in the first account field.$)$