EXERCISE $3-11$ Journal Entries and T$-$Accounts $[$L$02,$ L$04,$ L$05]$

Foley Company uses a job$-$order costing system. The following data relate to the month of October,

the first month of the company's fiscal year:

a$.$ Raw materials purchased on account, $$210,000.$

b$.$ Raw materials issued to production, $$190,000(80\%$ direct and $20\%$ indirect$).$

c$.$ Direct labor cost incurred, $$49,000$; and indirect labor cost incurred, $$21,000.$

d$.$ Depreciation recorded on factory equipment, $$105,000.$

e$.$ Other manufacturing overhead costs incurred during October, $$130,000($credit Accounts

Payable$).$

f$.$ The company applies manufacturing overhead cost to production on the basis of $$4$ per

machine$-$hour. A total of $75,000$ machine$-$hours were recorded for October.

g$.$ Production orders costing $$510,000$ according to their job cost sheets were completed during

October and transferred to Finished Goods.

h$.$ Production orders that had cost $$450,000$ to complete according to their job cost sheets were

shipped to customers during the month. These goods were sold on account at $50\%$ above cost.

Required:

Prepare journal entries to record the information given above.

Prepare T$-$accounts for Manufacturing Overhead and Work in Process. Post the relevant infor$-$

mation above to each account. Compute the ending balance in each account, assuming that

Work in Process has a beginning balance of $$35,000.$