The Sea rider Company uses a job-order costing system. The following transactions occurred in

April:

a. Raw materials were purchased on account, $180,000.

b. Raw materials used in production, $148,000 ($130,000 direct materials and $18,000 indirect

materials).

c. Accrued direct labor cost of $75,000 and indirect labor cost of $105,000.

d. Depreciation recorded on factory equipment, $40,000.

e. Other manufacturing overhead costs accrued during April, $118,000.

f. The company applies manufacturing overhead cost to production using a predetermined

overhead rate of $6 per machine-hours. A total of 46,000 machine-hours were used in April.

g. Jobs costing $495,000 according to their job cost sheets were completed during April and

transferred to Finished Goods.

h. Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to

customers during the month. These jobs were sold on account at 30% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant

transactions from above to each account. Compute the ending balance in each account,

assuming that Work in Process has a beginning balance of $39,000.