Log Cabin Homes, Inc., uses a job cost system to account for its jobs, which are prefabricated houses. As of January 1, 2019, its records showed inventories as follows:

Materials and supplies $ 100,000

Work in process (Job Nos. 22 and 23) 180,000

Finished goods (Job No. 21) 140,000

The work in process inventory consisted of two jobs:

Job No. Direct Materials Direct Labor Mfg. Overhead Total

22 $ 36,000 $ 40,000 $ 20,000 $ 96,000

23 40,000 28,000 16,000 84,000

$ 76,000 $ 68,000 $ 36,000 $180,000

Cost and sales data for 2019:

1.Materials purchased on account, $400,000.

2.Direct materials used: Job No. 22, $60,000; Job No. 23, $120,000; Job No. 24, $180,000. Indirect materials used, $10,000.

3.Direct labor costs: Job No. 22, $100,000; Job No. 23, $200,000; and Job No. 24, $80,000. Indirect labor costs, $80,000.

4.Overhead is assigned to jobs at $100 per machine-hour. Job No. 22 used 500 machine-hours, Job No. 23 used 1,000 machine-hours, and Job No. 24 used 300 machine-hours in January.

5.Job Nos. 22 and 23 were completed and transferred to Finished Goods Inventory.

6.Job Nos. 21 and 22 were sold on account for $1,200,000, total.

7.Manufacturing overhead costs incurred, other than indirect materials and indirect labor, were depreciation, $80,000, and heat, light, power, miscellaneous, $40,000.

a.Create journal entries (using the T-account format) to assign the preceding costs to jobs, and be sure to establish the beginning balance in the T-account.(See sample T-account format below).

Materials WIP Inventory - WIP Inventory - Dr. Inventory Cr. Dr. Job No. 21 Cr. Dr Job No. 22 Cr. Beg. Inv. Beg. Inv. Materials Labor Overhead Total Payroll WIP Inventory - WIP Inventory - Dr. Summary Cr. Dr. Job No. 23 Cr. Dr. Job No. 24 Cr. Beg. Inv. Materials Labor Overhead Total Manufacturing Finished Goods Cost of Dr. Overhead Cr. Dr. Inventory Cr. Dr. Goods Sold Cr