5. Continental uses a job order costing system and makes parts for snowmobiles. This is their first month of operations. They purchased $105,000 of raw materials. Continental incurred factory labor costs of $150,000. Manufacturing overhead costs totaled $148,000 for the month. Continental makes parts for snowmobiles. Make the journal entries for just the transactions listed below.

(a). Raw Materials of $45,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,000 was classified as indirect materials. Record the transfer of raw materials to the production accounts.

(b). Salary Payable of $150,000 was recorded for factory workers for the month. $125,000 factory labor was traced to people working on snowmobile parts and $10,000 was for salaries paid to the factory supervisor. Record the cost of labor transferred to the production accounts.

(c). Manufacturing overhead was applied to production at the rate of 40% of direct labor cost.

(d). Parts costing $115,000 were completed during the month. Record the transfer of the $115,000 for the completed work.