Chapter 17 Job Order Cost Systems and Overhead Allocations Zelda Manufacturing organized in June and recorded the following transactions during its first month of operations. 1. Purchased materials costing $800,000. 2. Used direct materials in production costing $485,000. 3. Applied direct labor costs of $500,000 to various jobs. 4. Applied manufacturing overhead at a rate of $10 per direct labor hour. (Direct labor workers earn $20 per hour.) 5. Incurred actual manufacturing overhead costs of $245,000 (credit "Various Accounts"). 6. Transferred completed jobs costing $745,000 to finished goods. 7. Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000. 8. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30. a. Prepare a journal entry for each of the eight transactions listed. b. Compute the balance of the Cost of Goods Sold account at June 30. c. Determine the company's inventory balances at the end of June. Part B Cost of goods sold (unadjusted) Overapplied overhead (see entry 8, part a) Cost of goods sold, June 30 Part C Beginning materials inventory Purchases Materials used on various jobs Materials inventory, June 30 42 Beginning work in process inventory 43 Direct materials used on various jobs 44 Direct labor charged to various jobs 45 Manufacturing overhead applied 46 Cost of jobs completed & transferred 47 Work in process inventory, June 30 48 49 Beginning finished goods inventory 50 Costs transferred from work in process 51 Costs applied to jobs sold 52 Finished goods inventory, June 30