Consider the following data for Birmingham Printing Company (in thousands):

Inventories, December 31, 2011

Direct materials …………… £ 12

Work in process …………… 20

Finished goods …………… 130

Summarized transactions for 2012 are as follows:

a. Purchases of direct materials …………………………………. £ 74

b. Direct materials used …………………………………………… 52

c. Direct labor …………………………………………………… 200

d. Factory overhead incurred …………………………………… 156

e. Factory overhead applied, 80% of direct labor cost ……………… ?

f. Cost of goods completed and transferred to finished goods … 417

g. Cost of goods sold ……………………………………………. 532

h. Sales on account ………………………………………………. 742

1. Prepare summary journal entries for 2012 transactions. Omit explanations.

2. Show the T-accounts for all inventories, Cost of Goods Sold, and Factory Department Overhead Control. Compute the ending balances of the inventories. Do not adjust for under applied or over-applied factory overhead.