Gibson Corporation makes coffee tables. The tables move through two departments during production. Lumber is cut into table parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished coffee tables to hobby shops.

The list of beginning balances are given below:

The transactions for the second year of operation (2019) are described here. (Assume that all transactions are cash transactions unless otherwise indicated.)

1. The company purchased $42,000 of direct raw materials and $1,400 of indirect materials. Indirect materials are capitalized in the Production Supplies account.
2. Materials totaling $14,600 were issued to the cutting department.
3. Labor cost was $49,200. Direct labor for the cutting and assembly departments was $24,200 and $21,000, respectively. Indirect labor costs were $4,000. (Note: Assume that sufficient cash is available when periodic payments are made. These amounts represent summary data for the entire year and are not presented in exact order of collection and payment.)
4. The predetermined overhead rate was $0.50 per direct labor dollar in each department.
5. Actual overhead costs other than indirect materials and indirect labor for the month were $16,600.
6. The cutting department transferred $28,000 of inventory to the assembly department.
7. The assembly department transferred $62,000 of inventory to finished goods.
8. The company sold inventory costing $36,000 for $71,000.
9. Selling and administrative expenses were $8,400.
10. At the end of 2019, $500 of production supplies was on hand.
11. Assume that over- or underapplied overhead is insignificant.

Required:

1. Record the data in T-accounts.

2. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant

$ 82,500 18,000 17,500 Cash Raw materials Work in process cutting Work in process assembly Finished goods Production supplies Common stock Retained earnings 17,000 4,000 200 125,000 14,200 Cash Common Stock Beg. bal. Beg. bal. End. bal. End. bal. Raw Materials Retained Earnings Beg. bal. Beg. bal. End. bal. End. bal. Manufacturing Overhead Sales Revenue Beg. bal. Beg. bal. End. bal. End. bal. Work in process Cutting Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal. Work in process Assembly Selling & Administrative Expenses Beg. bal. Beg. bal. End. bal. End. bal. Finished Goods Beg. bal. End. bal. Production Supplies Beg. bal