Minstrel manufacturing uses a job order costing system. during one month, minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. minstrel uses a predetermined overhead rate of 150% of direct labor cost. the journal entry to record the purchase of materials is: debit raw materials inventory $198,000; credit work in process inventory $198,000. debit work in process inventory $198,000; credit accounts payable $198,000. debit raw materials inventory $198,000; credit finished goods inventory $198,000. debit work in process inventory $195,000; credit raw materials inventory $195,000. debit raw materials inventory $198,000; credit accounts payable $198,000.

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)