Give general journal entries to record the following events during September:
1. Sale of goods
2. Cost of goods sold
At Knox Corporation, production is started in the Fab department. The work is then transferred to the finishing department where goods are completed and then transferred to the finished goods storeroom. Data about the company's costs during September 2016 follows:
Material costs placed into production
Fab department..............................$75,700.00
Finishing department...........................7,000.00
Direct labor costs
Fab department.............................112,000.00
Finishing department........................18,000.00
Taxes withheld from employees' earnings
Social security tax withheld................8,060.00
Medicare tax withheld......................1,885.00
Federal income tax withheld..............19,500.00
Overhead costs
Fab department............................44,800.00
Finishing department.......................7,200.00
During the month, products costing $198,000 were transferred from the Fab department to the finishing department; goods costing $225,000 were transferred from the finishing department to finished goods inventory; and goods that cost $180,000 were sold on account for $234,000.