A firm produces its products by a continuous process involving three production departments, 1 through 3. Present entries to record the following selected transactions related to productions during August:
• Materials purchased on account $120,000
• Materials requisitioned for use in department 1, 125,000$, of which 124,200 entered directly into the product.
• Labor cost incurred in department 1, $195,400 of which $174,000 was used directly in the manufacture of the product.
• Factory overhead costs for department 1 incurred on account, $54,700
• Depreciation on machinery in department 1, $29,000
• Expiration of prepaid applied to production in department 1 $7,000
• Factory overhead applied to production in department 1, $106,000
• Output of department 1 transferred to department 2, $362,700