Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses	$ 214,000
Purchases of raw materials	$ 268,000
Direct labor	$15,000
Administrative expenses	$ 159,000
Manufacturing overhead applied to work in process	$ 373,000
Actual manufacturing overhead cost	$ 355,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning	Ending
Raw materials	$ 54,000	$ 40,000
Work in process	$45,000	$ 24,000
Finished goods	$ 39,000	(61,000)

The total manufacturing costs added to production for the year were $670,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $33,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.

Superior Company
Income Statement
Sales		$1,057,000
Cost of goods sold		651,000
Gross margin		406,000
Selling and administrative expenses:
Selling expenses	$214,000
Administrative expenses	159,000
		373,000
Net operating income		$33,000

Superior Company
Schedule of Cost of Goods Sold
Beginning finished goods inventory	$39,000
Add: Cost of goods manufactured	691,000
Cost of goods available for sale	730,000
Less: Ending finished goods inventory	61,000
Unadjusted cost of goods sold	669,000
Less: Overapplied overhead	18,000
Adjusted cost of goods sold	$651,000

tory			$45,000
Direct materials:
Beginning raw materials inventory	$54,000
Add: Purchases of raw materials	268,000
Total raw materials available	322,000
Less: Ending raw materials inventory	40,000
Direct materials used in production		$282,000
Direct labor		15,000
Manufacturing overhead applied to work in process		373,000
Total manufacturing costs added to production			670,000
Total manufacturing costs to account for			715,000
Less: Ending work in process inventory			24,000
Cost of goods manufactured			$691,000

1. Write the journal entries for the following:

a. Raw materials purchased on account

b. Raw materials used as direct material

c. Recognition of direct labor owed to employees

d. Application of overhead to work-in-process

e. Recognition of Cost of Goods Manufactured

f. Recognition of Sales Revenue

g. Recognition of Cost of Goods Sold

h. Incurrence of actual overhead cost (Use various to represent multiple accounts.

i. Clear the over/under applied overhead from the overhead account to COGS