On June 30, New Haven Company’s work in Process inventory account showed a beginning balance of $29,400. The Materials Inventory account showed a beginning balance of $240,000. Production activity for July was as follows: Direct materials costing $238,820 were requested for production; total manufacturing payroll was $140,690, of which $52,490 was used to pay for indirect labor; indirect materials costing $28,400 were purchased and used; and overhead was applied at a rate of 150 percent of direct labor costs.
1. Record New Haven’s materials, labor, and overhead costs for July in T accounts.
2. Compute the ending balance in the Work in process Inventory account. Assume a transfer of $461,400 to the Finished Goods Inventory account during the period.