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Accounting for Materials and Labor Cliffs Custom Machine Shop had the following transactions during April: a. Purchased raw materials on account for $98,000. b. Requisitioned
Accounting for Materials and Labor Cliffs Custom Machine Shop had the following transactions during April:
a. Purchased raw materials on account for $98,000.
b. Requisitioned $80,000 of materials into production. Of this total, $70,000 was for direct materials.
c. Actual labor cost totaled $240,000. Assume labor has not yet been paid.
d. Direct labor incurred for the period totaled $190,000 and indirect labor totaled $50,000.
Requirement
1. Prepare summary journal entries for each transaction.
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