Acc505 Managerial Accounting: E2-11 Foley Company uses a job-order costing system

Acc505 Managerial Accounting Exercise 2-11 Journal Entries and T-accounts [LO2, LO4, LO5] 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, $189,000 (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 76,200 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 at 50% above cost. The goods were sold on account. Required: 1. Prepare journal entries to record the information given above 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000