W Ltd uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate of 250% based on direct labor costs. The following information appears in the companys Work in Process (WiP) inventory account for the month of May. All amounts are in $USD.

Debits to account:

Balance, May 1 16000

Direct materials 25000

Direct labor 30000

Manufacturing overhead 75000

Total debits to account 146000

Credits to account:

Transferred to Finished Goods Inventory account 66000

Balance, May 31st 80000

Work to be done: prepare the journal entries to summarize the following:

1. The manufacturing costs charged to production during the month of May. 2pts
2. The transfer of production completed during May to the Finished Goods Inventory account. 2pts
3. The cash sale of 70% of the merchandise completed during the month of May at a total sales price of $USD 98000. Show the related COGS in a separate journal entry. 4pts
4. What does the Gross margin (also called Contribution margin) amount to. Show your results in $USD and as a % of Sales. 2pts