The Gamma Company uses a job order costing system. The following activities took place during the

month of July:

a. Raw materials purchased, $40,000.

b. Direct raw materials used in production, $35,000.

c. Salaries and wages cost incurred: Direct labor cost $60,000, indirect labor cost $30,000 and sales salaries

$25,000.

d. Factory utility costs incurred, $15,000.

e. Depreciation on factory equipment, $50,000.

f. Advertising expense incurred, $80,000.

g. Manufacturing overhead is applied to jobs, $90,000.

h. Cost of Goods Manufactured for the month, $180,000.

i. Cost of Goods Sold for the month, $150,000 and Sales Revenue for the month, $200,000.

j. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.

Required:

i. Prepare journal entries to record the preceding transactions.

ii. Prepare all relevant T-accounts (must show balances of each t-account).