Job Cost Journal Entries Prior to the beginning of 2016, Lowe Company estimated that it would incur $440,000 of manufacturing overhead cost during 2016, using 40,000 direct labor hours to produce the desired volume of goods. On January 1,2016, beginning balances of Materials inventory, Work in Process inventory, and finished Goods Inventory were $70,000,5-0, and 5107,500, respectively, Required Prepare general journal entries to record the following for 2016, a. Purchased materials on account, 597,500. Description Debit Credit Materials inventory Accounts payable 0 97,500 b. or the total dollar value of materials used, 577,500 represented direct material and $27.500 indirect material. Description Debit Credit Work in process inventory 77.500 0 Manufacturing overhead 27.500 O Materials inventory 105,000 c. Determined total factory labor, $337,500 (37.500 hrs. $9/hr.). d. Of the factory labor, 80% was direct and 20% indirect, Credit Description Work in process inventory Debit 270.000 104 VZ O i 0 Description Debit Credit Work in process inventory 412.500 X Manufacturing overhead 412,500 * f. Determined actual manufacturing overhead other than those items already recorded, $230,000. (Credit Accounts Description Debit Credit Manufacturing overhead . 230,000 Accounts payable 0 230,000 8. Ending inventories of work in process and finished goods were $80,000 and $142,500, respectively. Determine the 0 Description Debit Credit Finished goods inventory 680,000 x Work in process inventory 680,000 x Description Debit Credit Cost of goods sold 645,000 X Finished goods inventory 0 645,000 * h. Transferred the balance in Manufacturing Overhead to Cost of Goods Sold. Credit Description Manufacturing overhead Cost of goods sold Debit 87,500 x 0 0 87,500 X