Marshall uses a job order costing system to account for projects. It applies manufacturing overhead to jobs on the basis of direct labor hours and pays its direct labor workers $30 per hour. The following information relates to the month of December (some of it may not be used to complete this exercise).

a. Record the purchase of direct materials in December. Assume all purchases are made on account.
b. Record the cost of direct materials applied to jobs in December.
c. Record the cost of direct labor applied to jobs in December.
d. Record the actual cost of manufacturing overhead incurred in December. Assume all overhead costs were paid in cash.
e. Record the cost of manufacturing overhead applied to jobs in December.
f. Record revenue and the related cost of jobs sold in December (prior to adjusting for overhead). Assume all sales are made on account.
g. Record December selling and administrative costs. Assume all selling and administrative costs were paid in cash.
h. Close the Manufacturing Overhead account directly to Cost of Goods Sold on December 31.
i. Compute the company’s December income. Ignore taxes.

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Manufacturing overhead budgeted (estimated on December 1).. Budgeted driver activity (DLH) (estimated on December 1) Direct materials purchased in December ... Direct materials used in December .... Actual direct labor costs in December. Actual manufacturing overhead in December. Cost of jobs completed in December .... Sales generated in December Cost of goods sold in December (prior to adjusting for overhead) Selling and administrative costs in December Materials Inventory, December 1.... Work in Process Inventory, December 1 Finished Goods Inventory, December 1 $160,000 $130,000 140,000 72,000 198,000 390,000 750,000 422,000 270,000 30,000 60,000 180,000 2,000 DLH