Prepare journal entries to summarize the 2017 transactions.

As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to the Cost of Goods Sold (COGS) account. Assume COGS given of $4,020 does not include the write off of overallocated manufacturing overhead. There should be 11 transactions.

The following data (in thousands) pertain to 2017:

Direct materials and supplies purchased on credit: $800

Direct materials used: $710

Indirect materials issued to various production departments: $100

Direct manufacturing labor: $1,300

Indirect manufacturing labor incurred by various production departments: $900

Depreciation on building and manufacturing equipment: $400

Miscellaneous manufacturing overhead incurred by various production departments: $550 o (Ordinarily, this would be detailed as repairs, photocopying, utilities, etc.)

Manufacturing overhead allocated at 160% of direct manufacturing labor costs: ?

Cost of goods manufactured: $4,120

Revenues: $8,000

Cost of goods sold (before adjustment for under- or overallocated manufacturing overhead): $4,020

Inventories, December 31, 2016 (not 2017): o Materials control: $100 o Work-in-process control: $60 o Finished goods control: $500