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Exercise 3-4 Preparing Journal Entries and T-Accounts (LO3 - CC5; L04 - CC8; L05 - CC10; L06 - CC12) Canada Capital Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year: o. Raw materials were purchased on account, $236,000. b. Raw materials were issued to production, $213.400 ($200,100 direct materials and $13,300 indirect materials). c. Direct labour cost was incurred, $111,300; indirect labour cost was incurred, $101.700. d. Depreciation was recorded on factory equipment, $41,300. e. Other manufacturing overhead costs were incurred during October $79,100 (credit accounts payable). f. The company applies manufacturing overhead cost to production on the basis of $8.00 per machine hour. There were 33,900 machine hours recorded for October g. Production orders costing $585,000 according to their job cost sheets were completed during October and transferred to finished goods. h. Production orders that had cost $538,500 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold at 20% above cost. The goods were sold on account Required: 1. Prepare journal entries to record the preceding information. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) 2. Prepare T-accounts for manufacturing overhead and work in process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that work in process has a beginning balance of $43,300. Manufacturing Overhead Beg bal. End bal Work in Process Beg bal End bal

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