Hogle Corporation is a manufacturer that uses job-order costing. On January 1, the beginning of its fiscal year, the company's inventory balances were as follows: Raw materials Work in process Finished goods. $20,000 $15,000 $30,000 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours. The following transactions were recorded for the year: 1) Raw materials were purchased on account, $410,000. 2) Raw materials were requisitioned for use in production, $380,000 ($360,000 direct materials and $20,000 indirect materials). 3) The following costs were accrued for employee services: direct labor, $75,000; indirect labor, $110,000; sales commissions, $90,000; and administrative salaries, $200,000. 4) Sales travel costs were $17,000. 5) Utility costs in the factory were $43,000. 6) Advertising costs were $180,000. 7) Depreciation was recorded for the year, $350,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). 8) Insurance expired during the year, $10,000 (70% relates to factory operations, and the remaining 30% relates to selling and administrative activities). 9) Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours on all jobs during the year. 10) Goods costing $900,000 to manufacture according to their job cost sheets were completed during the year. 11) Goods were sold on account to customers during the year for a total of $1,500,000. The goods cost $870,000 to manufacture according to their job cost sheets. Required: 1) Prepare journal entries to record the preceding transactions. 2) Post the entries in (1) above to T-accounts (don't forget to enter the beginning balances in the inventory accounts). Case# Account Titles Debit Credit