Reference no: EM13602854

Sturdy Packaging makes cardboard shipping cartons in a single operation. This period, Sturdy purchased $125,000 in raw materials. Its production department requisitioned $90,000 of those materials for use in producing cartons. Sturdy Packaging incurred $165,000 in factory payroll costs, of which $110,000 was direct labor. Sturdy Packaging requisitioned $62,000 of indirect materials from its raw materials and used $55,000 of indirect labor in its production of boxes. Also, it incurred $220,000 of other factory overhead costs. It applies factory overhead at the rate of 130% of direct labor costs. Sturdy Packaging completed 175,000 boxes costing $335,000 and transferred them to finished goods. Prepare its journal entry to record the transfer of the boxes from production to finished goods inventory