Required: 1. Prepare journal entries to record the above transactions. 2. Set up T-accounts for Materials inventory, Work in process, Finished goods, Overhead control and Cost of goods sold. Post all

entries necessary to these accounts. 3. Determine the Cost of Goods Manufactured. 4. Indicate whether overhead is over or under applied during the period, and by how much. What do we do to deal with, or dispose of, this amount? 5. Prepare the Statements of Cost of Goods Manufactured and Cost of Goods Sold for the period. (Note: When preparing the Cost of Goods Manufacturing Statement, use ONE amount for overhead - you need NOT list all of the individual overhead items.) 6. Show the Inventory section of the Balance Sheet for Montclair as of the end of January. 7. What factors could have caused overhead to be overapplied or underapplied for the period? (Hint: there are really ONLY 2)