Happy Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's account balances were as follows: Cash 1,045,000

Accounts Receivable 8,000

RM Inventory 26,000

WIP Inventory 21,000

FG Inventory 39,000

Supplies 8,000

Prepaid Insurance 3,000

Equipment 528,000

Accumulated Depreciation-Equipment 48,000

Accounts Payable 26,000

Common Stock, par $10 1,500,000

Retained Earnings 104,000

Total 1,678,000 1,678,000

The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 27,000 machine-hours and incur $189,000 in manufacturing overhead cost. At the beginning of the year, Company had one job in process - Job 110. Job Cost Sheet is stated on the Excel file in tab named Jobs. The following transactions were recorded for the year: 1) Raw materials were purchased in cash, $412,000.

2) Raw materials were requisitioned for use in production: Material Cost Job 110 $280,000 Job 111 110,000 Indirect Materials 28,000

3) The following employee costs were paid: Manufacturing: Job No. 110 $110,000 Job No. 111 47,000 Indirect labor 70,000 Administration 207,000 Selling 99,000

4) Utility costs of $20,000 was paid of which $15,000 related to factory.

5) Paid $36,000 rent of which $28,000 was related to factory .

6) Depreciation for the year was $103,000 of which $95,000 is related to factory operations and $8,000 is related to selling and administrative activities.

7) Manufacturing overhead was applied to jobs based on the following data. Activity level Job 110 Job 111 Machine hours 16,000 12,000

8) Job 110 was completed and transferred to warehouse.

9) Customer picked up Job 110 and paid for it. Sale price was Cost + 120% of Cost plus 8% sales taxes.

10) At the end of year, Factory Overhead, Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold had the following balances. Provide the journal entry to adjust the appropriate accounts assuming any over or under applied FOH is considered significant.

11) Paid $20,000 dividends to shareholders.

12) Recorded income tax expense. Company is subject to 30% income taxes.

Hint: You need to prepare a partial income statement in order to determine income before taxes for computing income tax expense.

Requirements: Provide journal entries for the transactions in the General Journal. Complete Job Cost Sheets as needed. Post transactions to the ledger accounts and prepare a Trial Balance