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Job Cost Journal Entries and T Accounts Following are certain operating data for Durango Manufacturing Company for January. Materials Inventory work in process Inventory Finished Goods Inventory Beginning inventory Ending inventory $142,500 82,500 $60,000 101,250 $187,500 1 20,000 Total sales were $4,500,000, on which the company earned a 40% gross profit. Durango uses a predetermined manufacturing overhead rate of 120% of direct labor costs. Manufacturing overhead applied was $900,000. Exclusive of indirect material used, total manufacturing overhead incurred was $607,500 it was over-applied by $56,250. Required Compute the following items. (Set up T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Manufacturing Overhead; fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.) a. Cost of goods sold. b. Cost of goods manufactured. c. Direct labor incurred d. Direct material used. Indirect material used. e. f. Total materials purchased. Materials Inventory Beg. bal End. bal Beg. bal (c) (d) End. bal Beg. bal Beg. bal (b) End. bal 142,500 963,750 x 26,250 x 1,023,750 (d) 56,250 X (e) work in process Inventory 60,000 2,632,500 ...4 (b) 750,000 1,023,750 101,250 Manufacturing Overhead o x 56,250 x 236,250 X End. bal. Finished Goods Inventory 187,500 2,632,500 120,000