Ying Company produces large quantities of a standardized product. The following information is available for its production activities for March.

Additional information about units and costs of production activities follows.

Additional information about units and costs of production activities follows.
Beginning finished goods inventory . . . . . . . . . . . $ 74,200
Cost transferred in from production . . . . . . . . . 195,520
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . (225,000)
Ending finished goods inventory . . . . . . . . . . . . . $ 44,720

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, and
(j) Sale of finished goods.
2. Prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation.

Analysis Component
3. This 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 production overestimates the percentage of completion for units in ending inventory with the result that its equivalent units of production in ending inventory for March are overstated. What impact does this error have on bonuses paid to the managers of the production department? What impact, if any, does this error have on these managers€™ Aprilbonuses?

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Raw materials Beginning Inventory Raw materlals purchased (on credit) 110,560 Indirect labor used Direct matertals used .._. . .. Indirect materlals used (20.280) Total factory overhead Incurred Factory overhead incurred $16,000 Indirect materlals used $20.280 .18,160 17.216 (98,560 Other overhead costs ng Inventory .n.... Factory payroll Direct labor used 5 770 Factory overhead applied (90% of direct labor cost) $61.840 Total factory overhead appled $55656 18,160 $80,000 Total payroll cost (pald In cash) Units Costs Beginning goods in process Inventory Ending goods in process Inventory Status of ending goods In process Iinventory 8,000 Beginning goods In process Inventory 6,000 Direct labor ,410 Factory overhead Direct materials added Direct labor added Overhead applied (90% of direct labor Total costs... Ending goods In process Inventory 269 4,919 98,560 61.840 55.656 $220.975 25,455 100% Labor and overhead-Percent complete 25%