Mountain Manufacturing Company produces custom stamped metal parts for a variety of customers in Western Canada. During January, the company had two jobs in process. Job A was an order for 1,200 stamped parts and was started in December. Job Ahad $12,000 of manufacturing costs already accumulated on January 1. Job B was an order for 1,000 stamped parts and was started in January The company used a job-order costing system. Total manufacturing overhead for the year was estimated to be $576,000. Mountain Manufacturing uses direct labour-hours as the allocation base to establish its predetermined overhead rate. A total of 19,200 direct labour-hours are expected to be worked during the year. On January 1, the start of the company's fiscal year, inventory account balances were as follows: Raw Materials Work in Process Finished Goods $15,000 $12,000 $10,000 During the month of January, the following transactions were completed: a. Raw materials were purchased for $30,000. b. Raw materials were requisitioned for use in production in the amount of $35,000. Of this amount, $25,000 was related to manufacturing ($5,000 for Job A and $20,000 for Job B) and the rest were indirect materials. c. In January, $32,000 of direct labour ($7,000 for Job A and $25,000 for Job B). In addition, $2,000 of indirect labour costs were incurred. d. In January, the company incurred the following general factory costs: Utilities expense of $8,000, rent on factory equipment of $8,000, and insurance costs of $1,900. e. The company recognized $10,000 in depreciation on factory equipment. f. The company applied manufacturing overhead to Job A and Job B. A total of 350 direct labour-hours were spent completing Job A and 1,250 direct labour-hours were recorded for Job B. g. Administrative salaries of $30,000 were paid in January. h. Selling expenses totalled $6,000 in January. i. Job A was completed in January. The completed cost of Job A according to the job cost sheet was $34,500. Job B remains in process at the end of January. j. Sales of all 1,200 units in Job A were recorded on account in the amount of $48,300 in January. Required: 1. Prepare journal entries to record the transactions for January. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Sales of all 1,200 units in Job A were recorded on account in the amount of $48,300 in January. Note: Enter debits before credits. Transaction General Journal Debit Credit j2. Record entry Clear entry View general journal 2. Prepare T-accounts. Determine ending balances in the inventory accounts and in the Manufacturing Overhead account. Raw Materials Accounts Receivable 48,300 Beg. Bal. Beg. Bal. a. C. End. Bal. 48,300 End. Bal. Work in Process Finished Goods Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Manufacturing Overhead Accounts Payable Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Salaries & Wages Payable Salaries Expense Beg. Bal. Beg. Bal. a. End. Bal. 0 End. Bal. 0 Sales Cost of Goods Sold Beg. Bal. Beg. Bal. C. End. Bal. 0 End. Bal. 0 Accumulated Depreciation Selling Expenses Beg. Bal. Beg. Bal. d. End. Bal. 0 End. Bal. 3. Prepare a schedule of cost of goods manufactured. Mountain Manufacturing Company Schedule of Cost of Goods Manufactured Direct materials: $ Raw materials inventory, beginning Add: Purchases of raw materials Materials available for use 15,000 30,000 45,000 10,000 35,000 10,000 $ Deduct: Raw materials inventory, ending Materials used in production Deduct: Indirect materials included in manufacturing overhead 25,000 Direct labour Manufacturing overhead applied to work in process Total manufacturing cost Add: Work in process, beginning 32,000 48,000 105,000 12,000 117,000 82,500 34,500 Deduct: Work in process, ending Cost of goods manufactured $ 4a. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to close any balance in the manufacturing overhead account to cost of goods sold. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal 4b. Determine the adjusted Cost of Goods Sold. The adjusted Cost of Goods Sold $ 26,400 5. Prepare an income statement for the month of January. $ 48,300 26,400 Mountain Manufacturing Company Income Statement For the Month ended January 31 Sales Cost of goods sold Gross margin Selling and administrative expenses: Salaries expense $ 36,000 Selling expenses Operating loss 21,900 36,000 (14,100) $