Answer:
1. The Journal Entry and their narrations is shown below:-
2. Preparation of Manufacturing Overhead and Work in Process is given below:-
Explanation:
a. Raw materials inventory Dr, $210,000
To Accounts payable $210,000
(Being purchase of raw material is recorded)
b. Work in process inventory Dr, $151,200
Manufacturing overhead Dr, $37,800
To Raw materials inventory $189,000
(Being material used is recorded)
c. Work in process inventory Dr, $50,000
Manufacturing overhead Dr, $21,000
To salaries and wages payable $71,000
(Being factory labor assigned is recorded)
d. Manufacturing overhead Dr, $105,000
To Accumulated depreciation $105,000
(Being depreciation of factory equipment is recorded)
e. Manufacturing overhead Dr, $130,000
To Accounts payable $130,000
(Being accrued of manufacturing overhead is recorded)
f. Work in process inventory Dr, $457,800
To Manufacturing overhead $457,800
($76,300 × $6)
(Being manufacturing overhead applied is recorded)
g. Finished goods inventory Dr, $512,000
To Work in process inventory $512,000
(Being completion of production is recorded)
h. Cost of goods sold Dr, $448,000
To Finished goods inventory $448,000
(Being cost of goods sold is recorded)
i. Accounts receivable Dr, $591,360
To Sales $591,360
$448,000 + (32% × $448,000)
(Being sale of product is recorded)
2. Manufacturing overhead
b. $37,800 f. $457,800
c. $21,000
d. $105,000
e. $130,000
Ending balance $164,000
Work in process inventory
Beginning balance $35,000 g. $512,000
b. $151,200
c. $50,000
f. $457,800
Ending balance $182,000
