Pineapple Corporation has asked you to record the following data relating to factory labor and overhead for one period during the year. Before operations began, management estimated direct labor costs for the year at $120,000 and factory overhead costs at $72,000.

Required:
Prepare journal entries for the transactions.

Transcribed Image Text:

1. An analysis of store requisitions showed indirect material amounted to $15,000. 2. The labor time tickets showed that actual labor cost was $72,000 including indirect labor of $9,000. Ignore salary deductions. 3. Cash of $2,100 was paid for miscellaneous factory overhead expenses. 4. Depreciation was $3,000 for the building and $1,000 for machinery and equipment. 5. Insurance of $500 on the building and machinery and equipment expired. 6. Accrued taxes on the factory building and factory machinery and equipment were estimated to be $5,600. 7. Apply factory overhead and close the under- or overapplied amount to Cost of Goods Sold.