Kraus Industries Inc. manufactures recreational vehicles. Kraus uses a job order cost system. The time tickets from July jobs are summarized below.
Job 501............................$4,200
Job 502..............................3,200
Job 503..............................2,870
Job 504..............................3,650
Factory supervision.........2,450
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $12 per direct labor hour. The direct labor rate is $30 per hour.
a. Journalize the entry to record the factory labor costs.
b. Journalize the entry to apply factory overhead to production for July.