Reference no: EM132958450

Hogle Company is a manufacturing firm that uses job-order costing. On January 1, the beginning of its fiscal year, the company's inventory balances were as follows:

Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000
Work in process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Finished goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company estimated that it would work 75,000 machine-hours and incur $450,000
in manufacturing overhead cost. The following transactions were recorded for the year:

A. Raw materials were purchased on account: $410,000.

B. Raw materials were requisitioned for use in production: $380,000 ($360,000 direct materials and $20,000 indirect materials).

C. The following costs were incurred for employee services: direct labour, $75,000; indirect labour, $110,000; sales commissions, $90,000; and administrative salaries, $200,000.

D. Sales travel costs were incurred: $17,000.

E. Utility costs were incurred in the factory: $43,000.

F. Advertising costs were incurred: $180,000.

G. Depreciation was recorded for the year: $350,000 (80% relates to factory operations, and 20% relates to selling and administrative activities).

H. Insurance expired during the year: $10,000 (70% relates to factory operations, and the remaining 30% relates to selling and administrative activities). (1 mark)

I. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours during the year.

J. Goods costing $900,000 to manufacture according to their job cost sheets were completed during the year.

K. Goods were sold on account to customers during the year at a total selling price of $1,500,000. The goods cost $870,000 to manufacture according to their job cost sheets.

Required

Problem 1: Prepare journal entries for each of the above transactions (A through K).