Amy Wells Company, Inc., gives you the following information concerning their August monthly operations. Before the year began, management decided to apply factory overhead on machine-hours. Estimated yearly factory overhead was $220,500 for the budgeted machinehours of 9,000. On August 1, 19X3, the balance in Finished Goods Inventory was $16,160, in Work in Process, $3,100; in Direct Materials Inventory, $2,850; and in Factory Supplies Inventory, $1,600. The company has a subsidiary ledger to record the details of its factory overhead.

i. Direct materials of $21,700 were purchased on account.

ii. Direct materials of $15,600 were issued out of the storeroom for use in production.

iii. Direct materials of $1,200 were issued out of the storeroom to be used as maintenance supplies.

iv. Analysis of the payroll records revealed the following (ignore payroll deductions):

v. Apply factory overhead; machine-hours were 760.

vi. Miscellaneous factory expense of $700 was paid for in cash.

vii. Analysis of the monthly depreciation schedules revealed the following:

The differences reflect the costs transferred. The difference in finished goods inventory reflects goods that were sold on account at a markup on cost of 35 percent. (This markup was calculated before over- or underapplied overhead is closed.)
x. Record the closing of all revenue and expense accounts.
Required:
Prepare the general journal entries to record the monthly operations using a factory overhead subsidiary ledger.

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Hours Payroll Costs Direct laborers. Superintendents... 2,000 $60,000 350 4,000 Factory repairers. 250 1,500 Factory janitorial staff. 800 4,500 Marketing staff... 500 9,000 Administrative staff 700 10,000 $89,000