Elliott Company produces large quantities of a standardized product. The following information is avail-able for its production activities for March.

Additional information about units and costs of production activities follows.

During March, 10,000 units of finished goods are sold for $ 120 cash each. Cost information regarding finished goods follows.
Beginning finished goods inventory . . . . . . . . . $ 150,000
Cost transferred in . . . . . . . . . . . . . . . . . . . . . 572,390
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . (592,390)
Ending finished goods inventory . . . . . . . . . . . $ 130,000

Required
1. Prepare journal entries dated March 31 to record the following March activities:
(a) Purchase of raw materials,
(b) Direct materials usage,
(c) Indirect materials usage,
(d) Factory payroll costs,
(e) Direct labor costs used in production,
(f) Indirect labor costs,
(g) Other overhead costs€” credit Other Accounts,
(h) Overhead applied,
(i) Goods transferred to finished goods,
(j) Sale of finished goods.
2. Prepare a process cost summary report for this company, showing costs charged to production, units cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation.
Analysis Component
3. The company provides incentives to its department managers by paying monthly bonuses based on their success in controlling costs per equivalent unit of production. Assume that the production department underestimates the percentage of completion for units in ending inventory with the result that its equivalent units of production in ending inventory for March are understated. What impact does this error have on the March bonuses paid to the production managers? What impact, if any, does this error have on Aprilbonuses?

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Raw materials Beginning inventory. 16,000 Indirect materials used 70,000 Raw materials purchased (on credit)250,000 Indirect labor used .. . . . . .45,000 Direct materials used....... (168,000) Other overhead costs164,790 Indirect materials used Ending inventory .28.000 Factory overhead incurred (70,000 Total factory overhead incurred $279,790 Factory overhead applied (140% of direct labor cost) Factory payroll Direct labor used.. Indirect labor used.45,000 Total payroll cost (paid in cash) ·····… $244.850 . $199,850 Total factory overhead applied ..$279,790 Units Costs Beginning goods in process inventory 2.000 Beginning goods in process inventory Started. 20,000 $2,500 2,650 Ending goods in process inventory ..5,000 Direct labor.... Direct materials added Direct labor added Overhead applied (140% of direct labor) Total costs . . Status of ending goods in process inventory 68,000 199,850 279.790 $656,500 $ 84,110 Materials-percent complete . . . . . . . . . Labor and overhead Percent complete 100% 35% . . . . . . . . . . . . . .