Docks Transport assembles prestige manufactured homes. Its job- costing system has two direct- cost categories (direct materials and direct manufacturing labor) and one indirect- cost pool ( manufacturing overhead allocated at a budgeted $ 25 per machine- hour in 2012). The following data (in millions) show operation costs for 2012:

Materials Control, beginning balance, January 1, 2012.............. $ 15

Work- in- Process Control, beginning balance, January 1, 2012 ..........8

Finished Goods Control, beginning balance, January 1, 2012 ..........8

Materials and supplies purchased on credit................. 158

Direct materials used ..........................151

Indirect materials ( supplies) issued to various production departments...... 15

Direct manufacturing labor ........................91

Indirect manufacturing labor incurred by various production departments ......39

Depreciation on plant and manufacturing equipment .............29

Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as

repairs, utilities, etc., with a corresponding credit to various liability accounts)... 14

Manufacturing overhead allocated, 2,400,000 actual machine- hours........ ?

Cost of goods manufactured....................... 298

Revenues 402 Cost of goods sold...................... 298

Required

1. Prepare an overview diagram of Docks Transport’s job- costing system.

2. Prepare T- accounts. What is the ending balance of Work- in- Process Control?

3. Dispose of under- or overallocated manufacturing overhead directly as a year- end writeoff to Cost of Goods Sold.

4. How did Docks Transport perform in 2012?