2. A summary of the time tickets for August follows: Description Job No. 321 Job No. 329 Job No. 336 Amount $11,000 9,200 3,000 Description Amount Job No. 342 $8,300 Job No. 346 5,700 Indirect labor 6,000 Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost. ANS: (a) (b) 1. The Zoe Corporation has the following information for the month of March. Prepare a schedule of cost of goods manufactured. Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process, March 1 22,000 Work in process, March 31 18,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 25,000 Sales 257,000 Sales and administrative expenses 79,000 ANS: Zoe Corporation Statement of Cost of Goods Manufactured For Month Ended March 31, 20xx Work in process inventory March 1 Direct Materials: Materials inventory, March 1 Purchases Cost of materials for use Less materials inventory, March 31 Cost of materials placed in production Direct Labor Factory overhead Total manufacturing costs added Total manufacturing costs Less work in process inventory, March 31 Cost of goods manufactured