. To estimate overhead, company assumes its $400,000 in overhead will be allocated by labor hour across 1,600 machine hours. In addition, the following represent the beginning balances for the different inventory accounts:

Raw Materials	$28,000
Works in Process	$24,000
Finished Goods	$48,000

QUESTIONS NEEDING HELP

1. Journal Entries including any necessary adjustments for Cost of Goods Sold
2. A Statement of Cost of Goods Manufactured
3. A Schedule of Cost of Goods Sold
4. An Income Statement

Note: $0 paid in interest expenses and has a 20% tax rate. Assume all transactions are in cash unless otherwise specified

1. Purchased $550,000 in raw materials on account
2. Requisitioned $420,000 of materials for use in production
3. Paid for $45,000 in utilities. $8,000 was for non-factory work and $37,000 was for factory work
4. Administrative salaries were $450,000, Direct Labor cost $320,000 and Indirect Factory Labor cost $190,000.
5. Depreciation expenses were $120,000. $20,000 was on non-factory assets while $100,000 was for factory assets
6. Rent expense on the factory was $48,000
7. Manufacturing Overhead was applied to jobs. Jobs took 1,400 machine hours to produce.
8. Finished Goods costing $1,055,000 were produced
1. Revenues of $1,625,000 were generated all on account. The cost of the goods sold was $980,000