# 7-17

ACC 121/310 PRACTICE: JOURNAL ENTRIES 1) Buy direct material on account, S4,000. 2) Buy indirect material on account, $3,000 Use direct material, $2,800 3) 4) Use indirect material, S1,500 5) Use direct labor on account, $1,200 (100 hours) 6) Use indirect labor on account $600 7) Factory depreciation = $900 8) Pay factory rent $700 cash Pay factory utilities $500 cash 9) 10) Purchase insurance on factory $1,600 cash 11) Use up $300 of the insurance 12) Apply F.O.H. at the rate of $15 per direct labor hour 13) Finish up goods of $2,200 14) Sell goods (cost of $800) for $4,000 15) Pay salesman salary, $300 cash 16) Pay rent on sales office, S700 cash 17) Pay sales office utilities, S250 cash REQUIRED: Do entries Draw the F.O.H. acct. Is it under or over applied