Job Cost Journal Entries Prior to the beginning of Year 1, Lowe Company estimated that it would incur $176,000 of manufacturing overhead cost for the year, using 16,000 direct labor hours to produce the desired volume of goods. On January 1, Year 1, beginning balances of Materials Inven-tory, Work-in-Process Inventory, and Finished Goods Inventory were $28,000, $-0-, and $43,000, respectively.

Required

Prepare general journal entries to record the following for the year:

Purchased materials on account, $39,000.

b.

Of the total dollar value of materials used, $31,000 represented direct materials and $11,000

indirect materials.

C.

Determined total factory labor, $135,000 (15,000 hrs. @ $9/hr.).

d.

Of the factory labor, 80% was direct and 20% indirect.

e.

Applied manufacturing overhead based on direct labor hours to work-in-process.

f.

Determined actual manufacturing overhead other than those items already recorded, $92,000.

(Credit Accounts Payable.)

Ending inventories of work-in-pog. 3-32 nd finished goods were $32,000 and $57,000, respec-tively. Determine the cost of finished goods (credit WIP) and the cost of goods sold (credit FG inventory). Make separate entries.

h.

Transferred the balance in Manufacturing Overhead to Cost of Goods Sold.