Eatern and Sons Ltd accounts for its manufacturing costs using a job order costing system and has provided the following production data during June 2016.

·  Job Z241 was in process as of 1 June with a cost of $22000.

· The purchases of raw materials on credit during the month amounted to $72000. Raw materials requisitioned were charged to the following:

Job Z241 Job Z242 Job Z243 Indirect materials

$17500 15000 23500 9000

· Payroll of $78000 was incurred. Each worker earns $12.00per hour. Ignore income tax and other payroll deductions.

· The factory payroll was distributed as follows:

Job Z241 Job Z242 Job Z243 Indirect labour

$21000 25500 22500 8500

·  Additional factory overhead costs incurred during the month were $11200 (assume that accounts payable was credited for $8600 and the rest was for accumulated depreciation of factory equipment).

·  Factory overhead is applied at $4.60 per direct labour hour.

·  Jobs Z241 and Z242 were completed and transferred to finished goods.

·  Job Z241 was sold at a mark-up of 50% over cost.

·  The beginning raw materials were $22200.

Required

A. Prepare the journal entries to record the June 2016 transactions.

B. Determine the balances of the Raw Materials Inventory and Work in Process Inventory accounts at the end of June 2016.