Reference no: EM132524554

Question - Oral is a joiner that specialises is making custom furniture for his clients. He allocates manufacturing overhead based 90% of direct labour costs. During January 2015 Oral recorded the following transactions:

a) Purchased materials on account, $40,000.

b) Paid advertising expense, 20,000.

c) The production department requisitioned $43,000 worth of direct materials and $15,000 worth of indirect materials.

d) Incurred $50,000 of manufacturing wages, 75% of which was direct labour with the remainder considered wages for indirect labour.

e) Paid utilities expenses for the factory, $7,000.

f) Allocated manufacturing overhead for January 2015.

g) Cost of completed furniture, $80,000.

h) Sold furniture for $200,000 on account. The cost of the furniture sold was $105,000.

i) Adjusted manufacturing overhead for the over-allocated or under-allocated overhead cost.

Requirement - Journalize Oral's transactions for the month of January 2015.