Journal Entries, Closing Manufacturing Overhead, and Preparing an Income Statement.Benning, Inc., is a defense contractor that uses job costing. Because the firm uses a perpetual inventory system, the three supporting schedules to the income statement (the schedule of raw materials placed in production, the schedule of cost of goods manufactured, and the schedule of cost of goods sold) arenotnecessary. Inventory account beginning balances at January 1, 2020, are listed as follows.

Raw materials inventory	$500,000
Work-in-process inventory	$700,000
Finished goods inventory	$1,800,000

You will be recording the following transactions, which summarize the activities that occurred during the year ended December 31, 2012:

1. Raw materials were purchased for $300,000 on account.
2. Raw materials totaling $420,000 were placed in production, $60,000 for indirect materials and $360,000 for direct materials.
3. The raw materials purchased in transaction1were paid for.
4. A total cost of $800,000 for direct labor, shown on the timesheets, was recorded as wages payable.
5. Production supervisors and other indirect labor working in the factory were owed $540,000, recorded as wages payable.
6. Wages owed, totaling $1,200,000, were paid. (These wages were previously recorded correctly as wages payable.)
7. The costs listed in the following related to the factory were incurred during the period. (Hint: Record these items in one entry with one debit to manufacturing overhead and four separate credits):

Building depreciation	$580,000
Insurance (prepaid during 2012, now expired)	$220,000
Utilities (on account)	$80,000
Maintenance (paid cash)	$440,000

8.Manufacturing overhead was applied at a rate of $20 per machine hour, and 90,000 machine hours were utilized during the year. (Hint: No need to calculate the predetermined overhead rate since it is already given to you here.)

9. Miscellaneous selling costs totaling $430,000 were paid. These costs were recorded in an account called selling expenses.

10. Miscellaneous general and administrative costs totaling $265,000 were paid. These costs were recorded in an account called G&A expenses.

11. Goods costing $2,030,000 (per the job cost sheets) were completed and transferred out of work-in-process inventory.

12. Goods were sold on account for $3,800,000.

13. The goods sold in transaction12had a cost of $2,570,000 (per the job cost sheets).

14. Payments totaling $3,300,000 from credit customers related to transaction 12 were recieved

MAKE JOURNAL ENTRIES FOR 1-14.