7. The Trump Corporation uses a job-order costing system. The following activities took place during the month of May:

a.	Raw materials purchased	$40,000
b.	Raw materials (all direct) used in production	$35,000
c.	Salaries and wages costs:
	Direct labor cost	$60,000
	Indirect labor cost	$30,000
	Sales salaries	$25,000
d.	Factory utility costs	$15,000
e.	Depreciation on factory equipment	$50,000
f.	Advertising expense	$80,000
g.	Manufacturing overhead is applied at the predetermined rate of 150% of direct labor cost.
h.	Cost of Goods Manufactured for the month	$180,000
i.	Cost of Goods Sold for the month	$150,000

Required:

Prepare journal entries to record the information given above. Key your entries by the letters a through i.

8) Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

A) started in process during the period.

B) in process during the period.

C) completed and sold during the period.

D) completed during the period.

9) Refer to the T-account below:

Manufacturing Overhead
(2)	4,000	(9)	150,000
(3)	15,000
(4)	80,000
(5)	30,000
(6)	25,000
	154,000		150,000
Bal.	4,000

Entry (4) could represent all of the following except:

A) Indirect labor cost incurred.

B) Factory insurance cost.

C) Overhead cost applied to Work in Process.

D) Depreciation on factory equipment.

10) Refer to the T-account below:

Work In Process
Bal.	30,000	(12)	270,000
(4)	90,000
(6)	70,000
(9)	110,000
Bal.	30,000

Entry (12) could represent which of the following?

A) Direct labor cost incurred in production.

B) Purchases of raw materials.

C) The cost of goods manufactured transferred to Finished Goods.

D) The cost of indirect materials incurred in production.