Donald Transport assembles prestige manufactured homes. Its jobcosting system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $31 per machine-hour in 2017). The following data (in millions) show operation costs for 2017:

Materials Control, beginning balance, January 1, 2017............................................$ 18

Work-in-Process Control, beginning balance, January 1, 2017.......................................9

Finished Goods Control, beginning balance, January 1, 2017.......................................10

Materials and supplies purchased on credit............................................................154

Direct materials used.....................................................................................152

Indirect materials (supplies) issued to various production departments............................19

Direct manufacturing labor................................................................................96

Indirect manufacturing labor incurred by various production departments........................34

Depreciation on plant and manufacturing equipment.................................................28

Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts)

...............................................................................................................13

Manufacturing overhead allocated, 3,000,000 actual machine-hours................................?

Cost of goods manufactured...........................................................................298

Revenues..................................................................................................410

Cost of goods sold.......................................................................................294

Required

1. Prepare an overview diagram of Donald Transport's job-costing system.

2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control?

3. Show the journal entry for disposing of under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts.

4. How did Donald Transport perform in 2017?