Lau and Lau, LLC (LL, LLC) builds swimming builds custom swimming pools in Boise, Idaho. LL, LLC uses material requisition forms and direct labor time tickets to trace direct materials and direct labor costs to specific jobs. Manufacturing overhead is applied to all jobs based on a percent of direct labor costs.

At the beginning of the second month of operations, the company had the following balances:

Raw Materials $ 75,000

Work in Process (WIP) $140,000

Finished Goods -0-

During the second month of operations (June 201XX), the company recorded the following transactions.

Purchased $220,000 in raw materials.

Issued the following materials to production:

$ 125,000 directly traceable to specific jobs.

$ 30,000 that was not directly traceable to specific jobs

Recorded the following labor costs (paid in cash):

$ 60,000 in direct labor

$ 35,000 in construction supervision

$ 26,000 in administrative salaries

Recorded the following actual manufacturing overhead costs

Construction insurance $ 11,500

Construction equipment depreciation $ 55,000

Pool permits and inspections $ 9,000

Recorded the $18,000 in nonmanufacturing costs.

Applied manufacturing overhead to jobs using 165% of direct labor costs.

Completed 16 pools at a total cost of $352,000. One (1) of these pools costing $22,000 is still waiting for final inspection and customer approval so the sale has not been finalized.

Realized sales revenue of $ 525,000 on the sale of the 15 pools that were sold.

Closed the Manufacturing Overhead account balance to Cost of Goods Sold.

Question:

1.Draw the following t-accounts and enter their beginning balances: Raw Materials, WIP, Finished Goods, MOH, COGS