1. The following inventory information is available for Muscat Manufacturing Corporation for the year ended December 31, 2018:

Beginning Ending

Inventories:

Raw materials $68,000 $76,000

Work in process 36,000 56,000

Finished goods 44,000 32,000

Total $148,000 $164,000

In addition, the following transactions occurred in 2018:

1. Raw materials purchased on account, $280,000.

2. Incurred factory labor, $320,000, all is direct labor. (Credit Factory Wages Payable).

3. Incurred the following overhead costs during the year: Utilities $27,200, Depreciation on manufacturing machinery $32,000, Manufacturing machinery repairs $36,800, Factory insurance $36,000 (Credit Accounts Payable and Accumulated Depreciation).

4. Assigned $320,000 of factory labor to jobs.

5. Applied $ 140,000 of overhead to jobs.

Instructions

(a) Journalize the above transactions.

(b) Reproduce the manufacturing cost and inventory accounts. Use T-accounts.

(c) From an analysis of the accounts, compute the following:

1. Raw materials used.

2. Completed jobs transferred to finished goods.

3. Cost of goods sold.

4. Under- or over applied overhead.