The university of Dehli Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. A job-costing system is used to cost each job. There are two direct-cost categories (direct materials and direct manufacturing labor) and one indirect -cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs).

The following data (in thousands) pertain to current year

Direct materials and supplies purchased on accountRs. 8,000

Direct material used7,100

Indirect material issued to various production departments1,000

Direct Manufacturing labor13,000

Direct manufacturing labor incurred by various departments9,000

Depreciation on building and manufacturing equipment4,000

Miscellaneous manufacturing overhead incurred by various departments5,500

(ordinarily would be detailed as repairs, photocopying, utilities, etc.)

Manufacturing overhead allocated at 160 per cent of direct manufacturing labor costs

Costs of goods manufactured41,200

Revenues80,000

Cost of goods sold40,200

Beginning inventories

Materials control10,000

Work-in-process control600

Finished goods control5,000

Required

Present an overview diagram of the job-costing system at the university of Delhi Press.

Prepare journal entries to summarize current year transactions. As your final entry, dispose of the year-end under or over allocated manufacturing overhead as a write-off to cost of goods sold. Number your entries. Explanations for each entry may be omitted.