Reference no: EM13520289

A firmproduces its products by a continuous process involving threeproduction departments, 1 through 3. Present entries torecord the following selected transactions related to productionduring August:

(a) Materials purchased on account,$130,000.
(b) Material requisitioned for use inDepartment 1, $125,700, of which $124,200 entered directly into theproduct.
(c) Labor cost incurred in Department1, $195,400, of which $174,000 was used directly in the manufactureof the product.
(d) Factory overhead costs forDepartment 1 incurred on account, $52,700.
(e) Depreciation on machinery inDepartment 1, $29,200.
(f) Expiration of prepaid insurancechargeable to Department 1, $7,000.
(g) Factory overhead applied toproduction, $105,300.
(h) Output of Department 1 transferredto Department 2, $362,700.