Comprehensive Example Ex. Finn Manufacturing Company uses a inventory records. Prepare journal entries to record the following transactions during the month of June job order cost accounting system and keeps perpetual June 1 Purchased raw materials for $20,000 on account. Raw materials requisitioned by production: Direct materials Indirect materials $8,000 1,000 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000. 15 Incurred $108,000 of factory labor. 25 Time tickets indicated the following: Direct Labor Indirect Labor (3,000 hrs x $8 per hr) 25 (7,000 hrs x $12 per hr) $84,000 24,000 $108,000 = Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. Goods costing $18,000 were completed in the factory and were transferred to finished goods Goods costing $15,000 were sold for $20,000 on account. 25 28 30