Reference no: EM132533385

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

1. Raw materials purchased on account, $88,000.

2. Direct materials used in production, $39,000. Indirect materials used in production, $17,800.

3. Paid cash for factory payroll, $55,000. Of this total, $39,000 is for direct labor and $16,000 is for indirect labor.

4. Paid cash for other actual overhead costs, $7,500.

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

6. Transferred cost of jobs completed to finished goods, $60,600.

7. Sold jobs on account for $86,500. The jobs had a cost of $60,600.