Reference no: EM13519114

Aladili Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows:

Raw materials	$36,000
Work in process	$41,000
Finished goods	$104,000

The company applies overhead to jobs using a predetermined overhead rate based on machine ours. At the beginning of the year, the company estimated that it would work 21,000 machine-hours and incur $210,000 in manufacturing overhead cost. The following transactions were recorded for the year:

a. Raw materials were purchased, $346,000.

b. Raw materials were requisitioned for use in production, $338,000 ($302,000 direct and $36,000 indirect).

c. The following employee costs were incurred: direct labor, $360,000; indirect labor, $68,000; and administrative salaries, $111,000.

d. Selling costs, $153,000.

e. Factory utility costs, $29,000.

f. Depreciation for the year was $102,000 of which $93,000 is related to factory operations and $9,000 is related to selling and administrative activities.

g. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 19,000 machine-hours.

h. The cost of goods manufactured for the year was $870,000.

i. Sales for the year totaled $1,221,000 and the costs on the job cost sheets of the goods that were sold totaled $855,000.

j. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.

Required:

Prepare the appropriate journal entry for each of the items above (a. through j.). You can assume that all transactions with employees, customers, and suppliers were conducted in cash.