Porter Company uses job-order costing. During January, the following data were reported: a. Materials purchased: direct materials,

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Question:

Porter Company uses job-order costing. During January, the following data were reported:

a. Materials purchased: direct materials, $82,000; indirect materials, $10,500.

b. Materials issued: direct materials, $72,500; indirect materials, $7,000.

c. Labor cost incurred: direct labor, $52,000; indirect labor, $15,750.

d. Other manufacturing costs incurred (all payables), $49,000.

e. Overhead is applied on the basis of 125 percent of direct labor cost.

f. Work finished and transferred to finished goods cost $160,000.

g. Finished goods costing $140,000 were sold on account for 150 percent of the cost.

REQUIRED:

1. Prepare journal entries to record these transactions.

2. Prepare a T-occount for Overhead Control. Post all relevant information to this account B What is the ending balance in this account? What does the ending balance represent?

3. Prepare a T-account for Work in Process. Assume a beginning balance of $10,000 and J post all relevant information to this account. Did you assign any actual overhead costs to Work in Process? Why or why not?