ABC uses job-order costing. It applies overhead cost to jobs on the basis of d

ABC uses job-order costing. It applies overhead cost to jobs on the basis of direct labor-hours. For the current year the company estimates that it will
work 20000 direct labor-hours and will incur $650000 of manufacturing overhead. The following transactions took place during the year:

a) $300000 of raw materials were purchased on account

b) Raw materials were issued into production $90000 direct materials and $40000 indirect materials

c) Labor costs incurred: $40000 direct $130000 indirect sales commissions $50000 administrative salaries $100000

d) Utility costs for the factory were $60000

e) Depreciation recorded was $300000 (70% related to factory; 30% related to administrative offices)

f) Manufacturing overhead was applied to production. Actual direct laborhours incurred were 22000.

g) Units costing $300000 were completed and transferred into the finished goods inventory.

h) Goods with a cost of $150000 were sold on account for $200000.

i) Closed the under/overapplied overhead for the year.