Douglas Basket Co. produces a specialty basket used by a gift basket company, Yours Truly Gifts. Douglas uses a just-in-time system and has very little inventories of material, work in process, or finished goods. Since the balances are so small the company carries them at zero for purposes of accounting.
During August, the company produced and shipped 200,000 baskets at a cost of $1.20 per basket. The cost was made up of 60 percent material cost, 30 percent labor cost, and 10 percent manufacturing overhead.

Required
Prepare journal entries to record:
a. The issuance of direct material.
b. The cost of direct labor (use wages payable).
c. The application of manufacturing overhead.
d. The completion of units in process and their transfer to finished goods.
e. Cost of goods sold.