Budenmayer BV is a small machine shop that uses highly skilled labor and a job-costing system (using normal costing). The total debits and credits in certain accounts just before year-end are as follows:

All materials purchased are for direct materials. Note that 'total debits' in the stock accounts would include beginning stock balances, if any.
The preceding accounts do not include the following:
a. The manufacturing labor costs recapitulation for the 31 December working day: direct manufacturing labor, ‚¬5000 and indirect manufacturing labor, ‚¬1000.
b. Miscellaneous manufacturing overhead incurred on 30 December and 31 December ‚¬1000.
Additional information
€¢ Manufacturing overhead has been allocated as a percentage of direct manufacturing labor costs through 30 December.
€¢ Direct materials purchased during 2007 were ‚¬85000.
€¢ There were no returns to suppliers.
€¢ Direct manufacturing labor costs during 2007 totaled ‚¬150 000, not including the 31 December working day described previously.
Required
1. Calculate the stock (31 December 2006) of Materials Control, Work-in-Progress Control and Finished Goods Control. Show T-accounts.
2. Prepare all adjusting and closing journal entries for the preceding accounts. Assume that all under- or over allocated manufacturing overhead is closed directly to Cost of Goods Sold.

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30 December 2007 Total debits Total credits Materials Control Work-in-Progress Control Manufacturing Department Overhead Control Finished Goods Control Cost of Goods Sold Manufacturing Overhead Allocated 100000 320000 85000 325 000 300000 70000 305 000 300000 90000