Reference no: EM133039536

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, $118,000.

b. Direct materials used in production, $46,500. Indirect materials used in production, $20,800.

c. Paid cash for factory payroll, $60,000. Of this total, $43,000 is for direct labor and $17,000 is for indirect labor.

d. Paid cash for other actual overhead costs, $9,375.

e. Applied overhead at the rate of 125% of direct labor cost.

f. Transferred cost of jobs completed to finished goods, $91,000.

g1. Jobs that had a cost of $91,000 were sold.

g2. Sold jobs on account for $130,000.

1-Record raw materials purchased on account.

2-Record the entry to assign costs of direct materials used.

3-Record the entry for indirect materials.

4-Record the usage of direct and indirect labor, paid in cash.

5-Record other actual overhead costs, paid in cash.

6-Record the entry to apply overhead at a rate of 125% of direct labor cost.

7-Record costs of jobs completed.

8-Record the cost of the jobs sold.

9-Record sales on account.