EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary (b) Material requisitioned for use in Department 1,$125,700, of which $124,200 entered directly into the product (c) Labor cost incurred in Department 1, $195,400, of which $174,000 was used directly in the manufacture of the product (d) Factory overhead costs for Department 1 incurred on account, $54,700 (e) Depreciation on machinery in Department 1, $29,200 (f) Expiration of prepaid insurance chargeable to Department 1, 57,000 (9) Factory overhead appled to production in Department 1,5106,300 (h) Output of Department 1 transferred to Department 2,\$362,700 Required: Present entries to record the sebected transactions related fo prodkction during August. Refor to the Chart of Accounts for exact wording of account tites Present entries fo record the selected transactions related to production on August 31 Refer to the Chart or Accounts for exact warding of account titles A firm produces is products by a continuous process involving three production departments; 1 through 3 . Following are the selected transactions ralated to production during August: (a) Materiats purchased on account, $120,000 (b) Material requistioned for use in Department 1,$125,700, of which $124,200 entered directly into the product (c) Labor cost incurted in Department 1,5195,400, of which $174,000 was used deectly in the manulacture of the product (d) Factory overtlead costs for Department 1 incurred on account, 554,700 (e) Depreciabon on machinery in Department 1, $20,200 (1) Expiration of prepaid insurance chargeable to Departasent 1, $7,000 (9) Factory overhead appsed to production in Department 1, 5106.300 (h) Output of Department 1 transferred to Department 2, $362,700 Chart of Accounts General Ledger ASSETS 110 Cash 121 Accounts Receivable 122 Supplies 123 Prepaid Insurance 130 Materials 132 Work in Process-Department 1 133 Work in Process-Department 2 134 Factory Overhead-Department 1 135 Factory Overhead-Department 2 181 Land 191 Machinery REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Insurance Expense 532 Utilities Expense 533 Supplies Expense 560 Depreciation Expense-Machinery 590 Miscellaneous Expense 710 Interest Expense 192 Accumulated Depreciation-Machinery