1.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.
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.