Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,100. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800. c. Payroll for the month: direct labor, $75,000; indirect labor, $35,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,500. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200. g. Factory utilities, $5,500. h. Advertising paid with cash, $7,900. i. Depreciation on office equipment, $800; on sales vehicles, $1,650. j. Legal fees incurred but not yet paid for preparation of lease agreements, $750. k. Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4,000 direct labor hours were worked during the month. 1. Cost of jobs completed during the month, $150,000. The company also reported the following beginning balances in its inventory accounts: Materials Inventory $7,500 Work-in-Process Inventory 37,000 Finished Goods Inventory 50,000 Required: Post the entries to the T-account in the same order in which they were journalized. Materials Inventory Balance (a) Balance Feedback 0X(b) 60,100 V 58,800 V Check My Work Set up T-accounts and consider the information that pertains to Overhead Control, Work-in-Process, Materials, and Finished Goods account. The use of T-accounts would provide a good picture of balances and transactions for the required reporting. Remember to focus on the normal balance of the accounts. What is the increasing side? The decreasing side? This will be helpful when posting the journalized transactions. Balance (b) Work in Process Inventory (e) X 37,000 X 50,000 Balance x 7,500 X Balance (d) Balance x Feedback Finished Goods Inventory Check My Work Set up T-accounts and consider the information that pertains to Overhead Control, Work-in-Process, Materials, and Finished Goods account. The use of T-accounts would provide a good picture of balances and transactions for the required reporting. Remember to focus on the normal balance of the accounts. What is the increasing side? The decreasing side? This will be helpful when posting the journalized transactions. Overhead Control (13) (h) x ( X (1) (k) X (0) X Balance Feedback 3. Prepare a statement of cost of goods manufactured. Jerico Company Statement of Cost of Goods Manufactured For the Month Ended May 31, 20XX Direct materials Direct labor Overhead: Supplies Indirect labor Depreciation, plant, and equipment Property taxes Utilities, factory Insurance Add: Overapplied overhead Overhead applied Manufacturing costs added Add: Beginning work in process Less: Ending work in process Cost of goods manufactured Feedback 74,000 X 160,000 X