The University of Toronto Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the Press were an outside business enterprise. The Press also publishes and maintains a stock of books for general sale. A job-costing system is used to cost each job. There are two direct cost categories (direct materials and direct manufacturing labour) and one indirect cost pool (manufacturing overhead, allocated based on direct labour costs).

The following data (in thousands) pertain to 2013:

Direct materials and supplies purchased on account........$ 800

Direct materials used.................... 710

Indirect materials issued to various production departments..... 100

Direct manufacturing labour................. 1,300

Indirect manufacturing labour incurred by various departments.. 900

Amortization on building and manufacturing equipment..... 400

Miscellaneous manufacturing overhead*

incurred by various departments............. 550

Manufacturing overhead allocated at 160%

of direct manufacturing labour costs................ ?

Cost of goods manufactured.................4,120

Revenues.......................8,000

Cost of goods sold.....................4,020

Inventories, December 31, 2012:

Materials control..................... 100

Work-in-process control................... 60

Finished goods control................... 500

*The term manufacturing overhead is not used uniformly. Other terms that is often encountered in printing companies include job overhead and shop overhead.

REQUIRED

1. Prepare general journal entries to summarize 2013 transactions. As your final entry, dispose of the year-end overallocated or underallocated manufacturing overhead as a direct write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.

2. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.