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, $-0-, and $107,500, respectively. Required Prepare general journal entries to record the following for 2016. a. Purchased materials on account, $97,500. Description Debit 4 0 0 Credit 0 0 b. Of the total dollar value of materials used, $77,500 represented direct material and $27,500 indirect material. Description Work in process inventory Debit Credit 0 0 0 0 0 0 c. Determined total factory labor, $337,500 (37,500 hrs. @ $9/hr.). d. Of the factory labor, 80% was direct and 20% indirect. Description Work in process inventory Debit Credit 0 0 0 0 0 0 e. Applied manufacturing overhead based on direct labor hours to work in process. Description Debit Credit 0 0 0 f. Determined actual manufacturing overhead other than those items already recorded, $230,000. (Credit Accounts Payable.) Description Accounts payable Debit 0 0 Credit 0 0 g. Ending inventories of work in process and finished goods were $80,000 and $142,500, respectively. Determine the cost of finished goods (credit WIP) and the cost of goods sold (credit FG inventory). Make separate entries. Description Work in process inventory Description Debit Credit 0 0 0 0 Debit Credit 0 0