"Assignment Instructions: Cool Sun produces awnings and screens. Cool Sun uses job order costing. Prepare journal entries to reflect the transactions. Memo entries are already included. (HINT: Calculate the manufacturing overhead costs for one month only). The transactions can be found on the ""problem"" worksheet. On the ""worksheet"" tab, prepare the journal entries for the Month of August only.

Journal Entries are below:

Aug. 4, 2022 Purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $10,700 and was paid with cash.

Aug. 6, 2022 Transferred 60% of the raw materials purchased on August 4 into production for Job No. 234. (Of the total transferred, $825 is indirect material).

Aug. 30, 2022 Labor costs for Job No. 234 for production workers include 185 hours at $42 per hour. Labor costs for general maintenance workers include 12 hours at $70 an hour.

Aug. 31, 2022 Factory overhead is applied at 80% of the direct labor cost.

Aug. 31, 2022 Depreciation on the factory equipment is determined using the straight-line method. The equipment was purchased nine years ago for $360,000. It has a 15-year life and no salvage value.

Aug. 31, 2022 The company purchased a one-year property insurance policy for the factory and equipment for $2,400 on January 1. The policy premium was originally debited to Prepaid Insurance.

Aug. 31, 2022 Property Taxes on the factory are $4,800 for the year.

Aug. 31, 2022 Factory utilities are $975 for the month of August.

Aug. 31, 2022 Transferred Job No. 234 with total assigned costs to finished goods.

Aug. 31, 2022 Sold and delivered the completed Job No. 234 to a customer for a 75% markup over cost, on account.

Aug. 31, 2022 Close out the manufacturing overhead account.

	GENERAL JOURNAL
	Date	Accounts		Debit	Credit
	4-Aug					O/H
		To record purchase of raw materials
	6-Aug
		To transfer raw materials to production.				0	0
	30-Aug					0
		To pay and allocate factory salaries
	31-Aug
		To apply overhead at predetermined overhead rate
	31-Aug
		Allocate depreciation
	31-Aug
		Allocate insurance on factory property
	31-Aug
		Allocate property taxes on factory property
	31-Aug
		Incur utilities on factory
	31-Aug
		Transfer Job No.234 to finished goods
	31-Aug
		To record sale of finished awning
	31-Aug
		Close out manufacturing overhead account