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 2009). The following data (in millions) pertain to operations for 2009:
1. Prepare an overview diagram of Donnell Transport’s job costing system.
2. Prepare journal entries. Number your entries. Post to T accounts. What is the ending balance of Work in Process Control?
3. Show the journal entry for disposing of under or over allocated manufacturing overhead directly as a year end write off to Cost of Goods Sold. Post the entry toT accounts.