Prior to the beginning of 2016, Lowe Company estimated that it would incur $352,000 of manufacturing overhead cost during 2016, using 32,000 direct labor hours to produce the desired volume of goods. On January 1,2016, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $56,000, $-0-, and $86,000, respectively.

Required

Prepare general journal entries to record the following for 2016.

a. Purchased materials on account, $78,000.

Description	Debit	Credit
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer

b. Of the total dollar value of materials used, $62,000 represented direct material and $22,000 indirect material.

Description	Debit	Credit
Work in process inventory	Answer	Answer
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer

c. Determined total factory labor, $270,000 (30,000 hrs. @ $9/hr.).

d. Of the factory labor, 80% was direct and 20% indirect.

Description	Debit	Credit
Work in process inventory	Answer	Answer
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer

e. Applied manufacturing overhead based on direct labor hours to work in process.

Description	Debit	Credit
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer

f. Determined actual manufacturing overhead other than those items already recorded, $184,000. (Credit Accounts Payable.)

Description	Debit	Credit
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer
Accounts payable	Answer	Answer

g. Ending inventories of work in process and finished goods were $64,000 and $114,000, respectively. Determine the cost of finished goods (credit WIP) and the cost of goods sold (credit FG inventory). Make separate entries.

Description	Debit	Credit
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer
Work in process inventory	Answer	Answer

Description	Debit	Credit
AnswerAccounts payableCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryWages payableWork in process inventory	Answer	Answer
Finished goods inventory	Answer	Answer

h. Transferred the balance in Manufacturing Overhead to Cost of Goods Sold.