Reference no: EM131763594
Question: Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations:
1. Purchased materials costing $800,000.
2. Used direct materials in production costing $485,000.
3. Applied direct labor costs of $500,000 to various jobs.
4. Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.)
5. Incurred actual manufacturing overhead costs of $245,000 (credit "Various Accounts").
6. Transferred completed jobs costing $745,000 to finished goods.
7. Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000.
8. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30.
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