Question - Job costing, journal entries. Donnell Transport assembles prestige manufactured homes. Its job costing system has two direct- cost categories ( direct materials and direct manufacturing labor) and one indirect- cost pool ( manufacturing overhead allocated at a budgeted $ 30 per machine- hour in 2011). The following data (in millions) pertain to operations for 2011:

Materials Control, beginning balance, January 1, 2011 - $ 12

Work- in- Process Control, beginning balance, January 1, 2011 - 2

Finished Goods Control, beginning balance, January 1, 2011 - 6

Materials and supplies purchased on credit - 150

Direct materials used - 145

Indirect materials (supplies) issued to various production departments - 10

Direct manufacturing labor - 90

Indirect manufacturing labor incurred by various production departments - 30

Depreciation on plant and manufacturing equipment - 19

Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) - 9

Manufacturing overhead allocated, 2,100,000 actual machine- hours - ?

Cost of goods manufactured - 294

Revenues - 400

Cost of goods sold - 292

Required -

1. Prepare an overview diagram of Donnell Transport's job- costing system.

2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T- accounts. What is the ending balance of Work- in- Process Control?

3. Show the journal entry for disposing of under- or overallocated manufacturing overhead directly as a year- end write- off to Cost of Goods Sold. Post the entry to T- accounts.