Job Cost Journal Entries and T Accounts Following are certain operating data for Durango Manu- facturing Company for January 2019:

Total sales were \($1,800,000\), on which the company earned a 40% gross profit. Durango uses a pre-determined manufacturing overhead rate of 120% of direct labor costs. Manufacturing overhead applied was \($360,000\). Exclusive of indirect materials used, total manufacturing overhead incurred was \($243,000;\) it was overapplied by \($22,500\). Required Compute the following items. (Set up T accounts for Materials Inventory, Work-in-Process Inventory, Finished Goods Inventory, and Manufacturing Overhead; fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.)

a. Cost of goods sold.

b. Cost of goods manufactured.

c. Direct labor incurred.

d. Direct materials used.

e. Indirect materials used.

f. Total materials purchased.

Transcribed Image Text:

Materials Inventory Work-in-Process Finished Goods Inventory Inventory Beginning inventory Ending inventory. $57,000 33,000 $24,000 $75,000 40,500 48,000