September 1, purchased raw materials ($120 million direct materials, $10 million indirect materials) for $130 million cash

September 2, moved all the raw material into production.

September 22 the company records applied overhead at the rate of 80% of direct material costs

September 29, paid cash for manufacturing labor services, $220 million ($200 million direct labor and $20 million indirect labor).

September 30, actual costs of other overhead items were calculated to be $76 million.

September 30, all the goods charged into production were completed and moved to the Finished Goods Inventory Account.

September 30, 95% of the completed goods were sold for cash at a markup of 15 % of the cost before adjusting for over or under-applied overhead costs.

Required:

Make the relevant T Accounts entries to record these transactions from the beginning of September to the closing of the temporary accounts at the end of September, assuming that the discrepancy between applied and actual overhead is NOT considered substantial. Prepare adjusted trial balance, Income Statement, and Balance Sheet. Assume no taxes ignore other costs. Attach all the necessary source documents needed for these entries.