Evergreen Company is manufacturing firm that uses job order costing system. On January 1, the beginning of its fiscal year, the company's inventory balances were: Materials Inventory - $50,000; Work in Process - $37,500; Finished Goods - $75,000.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 125,000 machine-hours and incur $720,000 in manufacturing overhead cost. The following are the transactions recorded for the year:
1. raw materials purchased on account, $810,000
2. raw materials were requested for use in production, $580,000
3. The following costs were incurred for employee services: direct labor, $150,000; indirect labor, $135,000
4. Factory utility cost incurred, %52,000
5. Factory Operations Depreciation was recorded for the year $380,000
6.Factory Operations Insurance expired during the year, $9,000
7. Manufacturing overhead was applied to production. Due to less than expected demand for its products, the company worked 76,000 machine-hours during the year
8. goods costing $800,000 to manufacture according to their job cost sheets were completed during the year
9. Goods were sold on account to customers during the year at a total selling price of $1,450,000. The goods cost $820,000 to manufacture according to their job cost sheet.
REQUIRED:
1. prepare journal entries
2. Post entries to T-accounts
3. Is overhead over applied or underapplied. Prepare journal entry to close any balance in the manucaturing overhead account to ccot of goods sold.
4 show ending balances for all T-accounts