5.38 Making the appropriate journal entry. Freeflow Company manufactures pipe and uses a normal JOCAS. During May, the following jobs were started (no other jobs were in process), and the following costs were incurred:

Job X Job Y Job Z Totals

Materials requisitioned $10,000 $20,000 $15,000 $45,000

Direct labor 5,000 4,000 2,500 11,500

Totals $15,000 $24,000 $17,500 $56,500

In addition, estimated overhead of $600,000 and direct labor costs of $150,000 were budgeted for the year. Overhead is applied on the basis of direct labor cost. Required: Make the appropriate journal entries to record the initiation of all jobs. [CIA adapted]