Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Sylvana 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, $36,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,400. 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, $1,680. 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 Work-in-Process Inventory Finished Goods Inventory $7,500 37,000 50,000 2. Prepare T-accounts for Materials Inventory, Overhead Control, Work-in-Process Inventory, and Finished Goods Inventory. Post the entries to the T-account in the same order in which they were journalized. Materials Inventory Balance Balance F 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) C (K) Balance Work in Process Inventory Balance Finished Goods Inventory Balance Feedback Check My Work Set up T-accounts and consider the information that pertains to Overhead Control, Work-in-Process, Mate picture of balances and transactions for the required reporting. Remember to focus on the normal balanc helpful when posting the journalized transactions. (b) Overhead Control Inventory (k) (c) (d) (e) (f) (g) Balance 3. Prepare a statement of cost of goods manufactured. Sylvana 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 Q 00000