ACCOUNTS RECEIVABLE RAW MATERIALS INV ACCOUNTS PAYABLE COST OF GOODS SOLD SALES FACTORY OVERHEAD WORK IN PROCESS INV 101 WAGES PAYABLE DM DM DL DL FO FO TOTAL 0 TRANSACTIONS FOR HOLLYWOOD MANUFACTURING 102 1 Raw materials were purchased for $42,000 on account. DM PREPAID INSURANCE FINISHED GOODS INV DL FO TOTAL 0 2 Materials are moved to the factory in the amount of $30,000. The indirect materials were $6,000 and the direct materials were $24,000. (The DM were assigned: $6,000 for Job 101; $8,000 for Job 102; and $10,000 for Job 103.) 3 Total labor costs were $42,000. Indirect labor was $4,000. The direct labor of $38,000 was assigned: $11,000 for Job 101; $12,000 for Job 102; and $15,000 for Job 103. EQUIPMENT ACC. DEPR. EQUIP 103 4 Factory overhead costs consisted of: Amount DM Factory supervision: credit Wages Payable 22,000 DL Equipment depreciation: credit Accum. Depr. Equip 10,000 FO Factory utilities: credit Accounts Payable 6,000 TOTAL 0 Factory insurance: credit Prepaid Insurance 2,000 40,000 5 Hollywood allocates factory overhead on the basis of direct labor cost at the rate of 130% of direct labor cost. 6 Jobs 101 and 102 were completed and moved to Finished Goods. 7 Job 101 was sold for $41,000 on account.