The following events occurred over the course of a year at Waterway Corp, which uses a job order costing system: 1. Direct materials purchases totaled $589,000. Waterway Corp tracks its direct materials separately from its indirect materials. Purchases were made on account. 2. $132,000 of indirect materials were used in production Waterway uses a separate Supplies Inventory account for indirect materials 3. $560,000 of direct materials were used in production 4. The direct labor payroll was $791,000 (credit Wages Payable). 5. Other manufacturing overhead costs incurred during the year totaled $689,000. 6. Waterway applies overhead based on a predetermined overhead rate of $23 per machine hour. The company used 49,000 machine hours during the year. 7. During the year, Waterway transferred goods costing $2,420,000 into the Finished Goods Inventory account 8. Waterway sold products with a manufacturing cost of $2,398,000 to customers during the year. - 1 Direct Materials Inventory 589,000 589,000 2 132,000 132,000 Accounts Payable (To record purchase of direct materials) Manufacturing Overhead Supplies Inventory (To record use of indirect materials in production) Work in Process Inventory Direct Materials Inventory (To record use of direct materials in production) Work in Process Inventory 3 560,000 560,000 4. 791,000 791,000 5. 689.000 689,000 6. 1.127.000 Wages Payable (To record direct labor payroll) Manufacturing Overhead Accounts Payable (To record actual manufacturing overhead) Work in Process Inventory Manufacturing Overhead (To record applied manufacturing overhead) Finished Goods Inventory Work in Process Inventory (To record transfer of completed goods to Finished Goods Inventory) Cost of Goods Sold 1,127,000 7. 2.420,000 2.420,000 8. 2.398,000 Finished Goods Inventory 2,398,000 Prepare T-accounts for the following accounts: Direct Materials Inventory Work in Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances (Post entries in order presented in the problemy Account Balance Direct Materials Inventory $30,000 Work in Process Inventory $24,000 Finished Goods Inventory $48,000 Direct Materials Inventory V Work In Process Inventory Manufacturing Overhead Manufacturing Overhead >> > Finished Goods Inventory