Roy’s Appliance Repair Shop uses a job order costing system to track the cost of each repair. Roy’s applies its “garage or shop” overhead at a rate of \($25\) per direct labor hour spent on each repair. Roy’s uses the following accounts to track the cost of all repairs:

The following transactions occurred during the most recent month:

(a) Purchased raw materials (parts and supplies) on account \($21,000.\)

(b) Used \($16,000\) in raw materials (parts and supplies). Of this, \($14,000\) was for major parts that were traceable to individual repair jobs, and the remainder was for incidental supplies such as lubricants, rags, fuel, and so on.

(c) Recorded a total of \($8,000\) in direct labor cost (for 400 hours) that are owed but not yet paid.

(d) Applied overhead to repair jobs at a rate of \($25\) per direct labor hour.

(e) Recorded the following actual overhead costs:

(f) Completed repair jobs costing \($45,000\) and charged customers at cost plus 30 percent. (Note: You can bypass the Finished Goods Inventory account, which is not appropriate in this context.)

Required:

Prepare journal entries for transactions (a)—(f) using the account names shown and other appropriate accounts such as Cash, Payables, Accumulated Depreciation, Prepaids, and Sales Revenue.

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Raw Materials (parts and supplies) Repair Jobs in Process Cost of Repairs Completed and Sold Garage/Shop* Overhead Costs