# Question: Drew Corp designs and manufactures mascot uniforms for high school

Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team's uniform is unique in color and design, Drew uses a job order costing system. On January 1, the T-accounts for some of Drew's primary balance sheet accounts were as follows:
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During the year, the following events occurred:
1. Drew purchased raw materials costing \$86,000 on account.
2. Drew used \$93,000 of raw materials in production. Of these, 70% were classifi ed as direct materials and 30% as indirect materials. (Drew maintains a single Raw Materials Inventory account.)
3. Drew used 31,200 hours of direct labor. The company's average direct labor rate was
\$7.50 per hour (credit Wages Payable).
4. The company's only indirect labor cost was the salary of a security guard hired to watch the company's shop after hours. The guard's annual salary was \$25,000 (credit Wages Payable).
5. Other manufacturing overhead costs the company incurred on account totaled \$70,000.
6. Drew applied \$130,000 in manufacturing overhead.
7. The company completed production of goods costing \$326,000.
8. The company's Cost of Goods Sold balance was \$303,750 before adjusting for over- or underapplied overhead.
9. Sales revenue was \$425,000 (all sales were made on account).
10. Drew collected \$450,000 from customers.
11. The company paid accounts payable of \$100,000.
12. At year-end, all wages earned during the year had been paid.

Required
a. Record the transactions above in the appropriate T-accounts and calculate ending balances. Create new T-accounts if needed.
b. Calculate total manufacturing costs for the year.
c. Calculate cost of goods available for sale during theyear.

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