uality Boxes manufactures fine handcrafted, wooden jewellery boxes. The firm uses a job costing system, and manufacturing overhead is applied on the basis of direct labour hours. Estimated manufacturing overhead for the current year is $240 000. The firm employs 10 carpenters, who are regarded as direct labour. Each of these employees is expected to work 2 000 hours during the year. Page 175 At the beginning of October the inventory balances were as follows: raw material: 5 000 metres of wood at $11 per metre, $55 000 work in process: job number G60, $3 700, consisting of direct material $500, direct labour $2 000, and manufacturing overhead $1 200 finished goods: job number B50, $12 000. The following events occurred during October: (a) The firm purchased 3 000 metres of wood at $11 per metre. (b) The following raw materials were transferred to production: (i) job number G60: 1 000 metres of wood (ii) job number C81: 5 000 metres of wood. (c) Five litres of glue were purchased in October and issued to production. The glue cost $20 per litre. Glue is treated as an indirect material. (d) Depreciation on the factory equipment for October was $8 000. (e) The month's $400 electricity bill for the manufacturing plant was paid in cash. (f) Time sheets showed the following use of labour: (i) job number G60: 100 hours of direct labour (ii) job number C81: 700 hours of direct labour. The carpenters (direct labour) earn $20 per hour, including on-costs. (g) The October council rates bill of $910 for the manufacturing plant was received but not yet paid in cash. (h) The firm employs labourers who perform various tasks such as material handling and shop clean-up. Their wages for October amounted to $2 500. (i) Job number G60, which was started in July, was finished in October. Job number C81 was incomplete at the end of October. (j) Job number B50 was sold in October for $15 000. Required: Provide journal entries to record the events listed for October. Post journal entries to the following inventory ledger accounts and determine closing balances. (a) raw material (b) work in process (c) finished goods. Prepare a job cost card for job number G60