Exercise 16.23 (Algo) Recording production costs LO P3, P4 Re-Tire produces bagged mulch fiom recycled tires. Production involves shredding tires and packaging the pieces in the Bagging department, All direct materials enter in the Shreding process. A predetermined overhead rate of 185% of direct labor costs is used in both departments. The following describes production operations for October. Sales fon credit) for the month total $430,000 and cost of goods sold for the month is $250,000. Prepare journal entries dated October 31 to record October production activities for (1) direct materials usage. (2) direct labor usage, (3) overheed applied, (4) costs transfer from Shredding to Bagging, (5) costs transfer from Bagging to finished goods, (6) credit sales, and (7) cost of goods sold