raw material 25,000

work in process 10,000

finished goods 40,000

direct labor 180,000

indirect labor 72,000

sales commissions 63,000

administrative salaries 90,000

Part 1 (Post to T-accts)

Your need to make T-accounts for inventory (RM, WIP, and FG), MOH, and CGS. For the inventory accounts, don't forget to include the beginning inventory (given before item a)

Part 2 (MOH account)

When you include all the inputs (debits and credits) in the MOH T-account, you should be able to arrive at how much is under- or over-applied. Then you will need make the entry to close the MOH (see journal entry notes if need be). Half of the closing entry impacts CGS (which will need to go into the T-account for CGS which you started in Part 2).

Part 3 (Income statement)

Sales is given. Use the CGS figure that includes the addition or reduction associated with closing MOH. The operating expenses (SG&A) are from the journal entries in part 1.