Reference no: EM132323740

Question :

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

a. Raw materials purchased on account, $96,000.

b. Direct materials used in production, $41,000. Indirect materials used in production, $18,600.

c. Paid cash for factory payroll, $40,000. Of this total, $32,000 is for direct labor and $8,000 is for indirect labor.

d. Paid cash for other actual overhead costs, $8,000.

e. Applied overhead at the rate of 120% of direct labor cost.

f. Transferred cost of jobs completed to finished goods, $60,000.

g. Sold jobs on account for $85,000 g(2). The jobs had a cost of $60,000 g(1).