Hot and Cold makes electronic thermostats for homes and offices. The Oklahoma City division makes one product, Autotherm, which has a standard cost of $36, consisting of $24 of materials and $12 of conversion costs. In January, actual purchases of materials totaled $229,500, labor payroll costs were $25,000, and manufacturing overhead was $56,000. Completed output was 9,000 units. The Oklahoma City division uses a backflush-costing system that records costs in materials inventory and conversion costs accounts and applies costs to products at the time production is completed. There were no finished-goods inventories on January 1 and 40 units on January 31. Read the requirements. Journal Entry Accounts Debit Credit Cost of Goods Sold 322,560 Finished Goods Inventory 322,560 Requirement 2. Suppose the journal entry to recognize overapplied or underapplied conversion cost from requirement 1 has already been recognized.) Journal Entry Accounts Debit Credit Conversion Costs Cost of Goods Sold Requirments 1. Prepare journal entries (without explanations) to record January's costs for the Oklahoma City division. Include the purchase of materials, incurrence of labor and manufacturing overhead costs, application of product costs, and recognition of cost of goods sold. 2. Suppose the journal entry to recognize overapplied or underapplied conversion costs at the end of January. Print Done underapplied or overapplied costs