=+EX 19-13 Entries for factory costs and jobs completed obj. 2

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d. $31,160 The following events took place for Salsa Inc. during May 2010, the first month of operations as a producer of road bikes:

• Purchased $244,000 of materials.

• Used $210,000 of direct materials in production.

• Incurred $180,000 of direct labor wages.

• Applied factory overhead at a rate of 75% of direct labor cost.

• Transferred $510,000 of work in process to finished goods.

• Sold goods with a cost of $485,000.

• Sold goods for $870,000.

• Incurred $210,000 of selling expenses.

• Incurred $75,400 of administrative expenses.