Budenmayer BV is a small machine shop that uses highly skilled labour 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 labour costs recapitulation for the 31 December working day: direct manufacturing labour, €5000 and indirect manufacturing labour, €1000.
b Miscellaneous manufacturing overhead incurred on 30 December and 31 December: €1000.
Additional information Required 1 Calculate the stock (31 December 2022) 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 overallocated manufacturing overhead is closed directly to Cost of Goods Sold.3 Calculate the ending stock (31 December 2023), after adjustments and closing, of Materials Control, Work-in-Progress Control and Finished Goods Control.

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30 December 2023 Total debits Total credits Materials Control 100 000 70 000 Work-in-Progress Control 320 000 305 000 Manufacturing Department Overhead Control 85 000 Finished Goods Control 325 000 300 000 Cost of Goods Sold 300 000 Manufacturing Overhead Allocated 90 000