Job Cost Journal Entries and T Accounts

Following are certain operating data for Durango Manufacturing Company for January 2019:

	Materials Inventory	Work in Process Inventory	Finished Goods Inventory
Beginning inventory	$57,000	$24,000	$75,000
Ending inventory	33,000	40,500	48,000

Total sales were $1,800,000, on which the company earned a 40% gross profit. Durango uses a predetermined manufacturing overhead rate of 120% of direct labor costs. Manufacturing overhead applied was $360,000. Exclusive of indirect material used, total manufacturing overhead incurred was $243,000; it was over-applied by $22,500.

Required

Compute the following items. (Set up T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Manufacturing Overhead; fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.)

Materials Inventory
Beg. bal.	57,000	Answer	(d)
(f)	Answer	Answer	(e)
End. bal.	Answer
Work in Process Inventory
Beg. bal.	24,000	Answer	(b)
(c)	Answer
(d)	Answer
	Answer
End. bal.	Answer
Manufacturing Overhead
Beg. bal.	0	Answer
	Answer
(e)	Answer
		Answer	End. bal.
Finished Goods Inventory
Beg. bal.	75,000	Answer	(a)
(b)	Answer
End. bal.	Answer