I-Bus Manufacturing assembles custom computers. Manufacturing overhead is allocated at a rate of $5 per machine hour. The following information is available. (Note that factory supplies are indirect materials and are maintained in the raw materials stockroom and thus are included in the raw materials inventory balance):

Raw materials 1/1/19 $ 15 Raw materials & factory supplies purchased $165

Work in process 1/1/19 5 Direct labor 105

Finished goods 1/1/19 10 Presidents salary 36

Direct materials used 145 Factory supplies used 10 Depreciation on plant 19 Indirect factory labor used 30

Utilities on the factory 16 Utilities on showroom floor 35

Sales $475 Finished goods 12/31/19 12

Raw materials 12/31/19 ??? Work in process 12/31/19 20

Salesperson salary 25 Property taxes, administration bldg 5

Manufacturing overhead allocated, 17 actual machine hours ??

REQUIRED:

1)

1. Prepare the journal entries for the above information (15 journal entries).
2. Prepare the journal entry to close the over-or-under applied overhead to cost of goods.
3. Prepare a cost of goods manufactured statement.
4. Prepare a cost of goods sold statement.
5. Prepare an income statement.