Job Cost Journal Entries and T Accounts Following are certain operating data for Durango Manufacturing Company for January 2016

Total sales were $900,000, 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 $180,000. Exclusive of indirect material used, total manufacturing overhead incurred was $121,500 it was over-applied by $11,250.

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.)

a.Cost of goods sold.

b.Cost of goods manufactured.

c.Direct labor incurred

d.Direct material used.

e.Indirect material used.

f.Total materials purchased.

(Don't know if what is filled in is correct)

Job Cost Journal Entries and T Accounts Following are certain operating data for Durango Manufacturing Company for January 2016 Materials Inventory Work in Process Inventory Finished Goods Inventory Beginning inventory $28,500 $12,000 $37,500 Ending inventory 16,500 20,250 24,000 Total sales were $900,000, on which the company earned a 40% gross profit. Durango uses a predetermined ma Materials Inventory Beg. bal. 28,500 0 (d) 0 47,250 (e) End. bal. 16,500 Work in Process Inventory Beg. bal. 12,000 0 (b) 150,000 (d) End, bal. 20.250 Manufacturing Overhead Beg. bal. (e) 47,250 180,000 End, bal. Finished Goods Inventory Beg. bal. 37,500 0 (a) (b) End. bal. 24,000