Madelon Lee Company's general ledger included the following items related to its manufacturing activities for 2019. The accounts have been adjusted but have not yet been closed:
Raw Materials Inventory
Work in Process Inventory
Purchases - Raw Materials
Direct Labor
Indirect Labor
Factory Utilities
Repairs and Maintenance - Factory Equipment
Rent Expense - Factory Building
Property Taxes - Factory Site
Factory Insurance Expense
Factory Supplies Expense
Depreciation Expense - Factory Equipment
Amortization of Patents
$84,600
$99,360
$311,400
$450,000
$194,220
$109,440
$30,060
$84,600
$19,260
$16,020
$34,920
$82,800
$13,680
In addition, the ending inventory of raw materials is known to be $91,080. The ending inventory of Work in Process is not known, but it is known that the company makes a single product and 4,500 units of goods were in process on Dec 31, 2019. Each unit contained an estimated $18 of direct materials and had $7.50 of direct labor cost assigned to it.
Required: Calculate the overhead rate based on the relationship between total manufacturing overhead cost and total direct labor cost. Then, determine the cost of the ending Work in Process inventory. Prepare the statement of cost goods manufactured for 2019. Prepare the journal entries to close the manufacturing accounts to manufacturing summary and to close the manufacturing summary account.