Ltd. manufactures and installs kitchen cabinetry. It uses normal job costing with two direct cost categories (direct materials and direct manufacturing labour) and one indirect cost pool for manufacturing overhead (MOH), applied on the basis of machine-hours (MH). At the beginning of the year, the company estimated that it would work $1,030,000 MH and had budgeted $88,580,000 for MOH. The following data (in $ millions) pertain to operations for the year 2022:

Requirement 1 and 2. Prepare general journal entries. Show the journal entry for disposing of over- or underallocated manufacturing overhead directly as a year-end write-off to Cost of Goods Sold. Post the entries to T-accounts. (Record debits first, then credits. Explanations are not required.)

First, prepare the general journal entries.

(1) Record the purchase of materials.

(2) Record the direct materials used.

(3) Record the indirect materials used.

(4) Record the cost of the direct and indirect labour used in production. (Combine the entries to record direct and indirect labour into one entry.)

(5) Record the depreciation expense.

(6) Record the miscellaneous manufacturing overhead costs.

(7) Now, record the entry to allocate the manufacturing overhead. (Hold all decimals in interim calculations. Round your answer to one decimal place.)

(8) Record the cost of goods manufactured.

(9) Record the revenues earned.

(10) Record the cost of goods sold.

(11) Dispose of the year-end under- or overallocated manufacturing overhead. (Round your answers to one decimal place.)

- Operations data (in millions) HA 7.0 1.7 7.2 242 199 28 133 Materials control (beginning balance), December 31, 2021 Work-in-process control (beginning balance), December 31, 2021 Finished goods control (beginning balance), December 31, 2021 Materials and supplies purchased on account Direct materials used Indirect materials (supplies) issued to various production departments Direct manufacturing labour Indirect manufacturing labour incurred by various departments Depreciation on plant and manufacturing equipment Miscellaneous manufacturing overhead incurred (credit Various Liabilities; ordinarily would be detailed as repairs, utilities, etc.) Manufacturing overhead allocated (960,000 actual MH) Cost of goods manufactured Revenues Cost of goods sold 23 21 10.8 ? 374.4 555 320 Print Done Required 1. 2. Prepare general journal entries. Post to T-accounts. Show the journal entry for disposing of over- or underallocated manufacturing overhead directly as a year-end write-off to Cost of Goods Sold. Post the entry to T-accounts. Print Done Journal Entry Accounts Debit Credit (In millions) (1) Now, post journal entries (1) through (11) to the accounts below and then calculate the ending balance in each account. (For accounts with a $0 balance, leave the balance cells blank. Enter amounts in millions. Round amounts to one decimal place.) Work-in-Process Manufacturing Overhead Control Materials Control Control Bal. 7 Bal. 1.7 Bal. Bal. Bal. Finished Goods Manufacturing Overhead Allocated Control Cost of Goods Sold Bal. 7.2 Bal. Bal. Bal