Job Cost Journal Entries Prior to the beginning of 2016, Lowe Company estimated that it would incur $352,000 of manufacturing overhead cost during 2016, using 32,000 direct labor hours to produce the desired v goods. On January 1,2016, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $56,000, $-0-, and $86,000, respectively, Required Prepare general journal entries to record the following for 2016, a. Purchased materials on account, $78,000. Description Debit Credit Materials inventory 78,000 Accounts payable 0 78,000 b. Of the total dollar value of materials used, $62,000 represented direct material and $22,000 indirect material. 0 Description Debit Credit Work in process inventory 62,000 Manufacturing overhead 22,000 Materials inventory 84.000 c. Determined total factory labor, $270,000 (30,000 hrs. @ $9/hr.). d. Of the factory labor, 80% was direct and 20% indirect. Description Debit Credit Work in process inventory 216,000 Manufacturing overhead 54,000 0 Wages payable 270,000 e. Applied manufacturing overhead based on direct labor hours to work in process. Debit Description Work in process inventory Manufacturing overhead OX Credit 0 0 x e. Applied manufacturing overhead based on direct labor hours to work in process. Description Debit Credit Work in process inventory OX Manufacturing overhead OX f. Determined actual manufacturing overhead other than those items already recorded, $184,000. (Credit Accounts Payable.) Description Manufacturing overhead Accounts payable g. Ending inventories Debit Credit 184,000 0 0 184,000 work in process and finished goods were 564,000 and $114,000, respectively. Determine the cost of finished goods (credit WIP) and the cost of goods sold (credit FG inventory Credit Description Finished goods inventory Work in process inventory Debit OX 0 0 Description Debit Credit Cost of goods sold 0 x 0 Finished goods inventory 0 OX h. Transferred the balance in Manufacturing Overhead to Cost of Goods Sold, Debit Description Manufacturing overhead Cost of goods sold Credit 0 . OX