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Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company a. Materials purchased on account, $60,100 b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800 C. Payroll for the month: direct labor, $75,000; indirect labor, $36,000; administrative, $28,000; sales, $19,000 d. Depreciation on factory plant and equipment, $10,400 e. Property taxes on the factory accrued during the month, $1,450 f. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200 g. Factory utilities, $5,500 h. Advertising paid with cash, $7,900 i. Depreciation on office equipment, $800; on sales vehicles, $1,650 j. Legal fees incurred but not yet paid for preparation of lease agreements, $750 k. Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4,000 direct labor hours were worked during the month I. Cost of jobs completed during the month, $160,000 The company also reported the following beginning balances in its inventory accounts Materials Inventory Work-in-Process Inventory Finished Goods Inventory $7,500 37,000 50,000