Westerville Company's beginning and ending inventories for the month of May are May 1 May 31 Direct Materials $67,000 $62,000 Work in Process $145,000 $171,000 Finished Goods $85,000 $78,000 Production data for the month of May follows: Direct labor $200,000 Actual manufacturing overhead $132,000 Direct materials purchased $163,000 Transportation in $2,000 Westerville Company uses one overhead control account and charges overhead to production at 70% of direct labor cost. The company does not formally close the account until the end of the year. Westerville Company's total manufacturing cost for May is $363,000 $510,000 $503,000 $502,000

Areview of the ledger of sheridan company at december 31, 2017, produces these data pertaining to the preparation of annual adjusting entries. 1. prepaid insurance $19,661. the company has separate insurance policies on its buildings and its motor vehicles. policy b4564 on the building was purchased on july 1, 2016, for $13,290. the policy has a term of 3 years. policy a2958 on the vehicles was purchased on january 1, 2017, for $8,586. this policy has a term of 18 months. 2. unearned rent revenue $468,720. the company began subleasing office space in its new building on november 1. at december 31, the company had the following rental contracts that are paid in full for the entire term of the lease. term (in months) number of leases date monthly rent nov. 1 8 $5,450 6 dec. 1 6 $8,630 4 3. notes payable $43,200. this balance consists of a note for 6 months at an annual interest rate of 7%, dated october 1. 4. salaries and wages payable $0. there are 9 salaried employees. salaries are paid every friday for the current week. 6 employees receive a salary of $620 each per week, and 3 employees earn $755 each per week. assume december 31 is a wednesday. employees do not work weekends. all employees worked the last 3 days of december. prepare the adjusting entries at december 31,2017.