"Prior to the beginning of 2016, Lowe Company estimated that it would incur $176,000 of manufacturing overhead cost during 2016, using 16,000 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 $28,000, $-0-, and $43,000, respectively."

a. Purchased materials on account, $39,000. Description Debit Credit Materials inventory 39,000 Accounts payable 39,000 b. Of the total dollar value of materials used, $31,000 represented direct material and $11,000 indirect material. Description Work in process inventory Manufacturing overhead Materials inventory 0 42,000