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Exercise 3 - 1 8 Recording costs of materials P 3 Prepare journal entries to record the following production activities. Purchased $ 8 0 ,

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Exercise 3-18 Recording costs of materials P3
Prepare journal entries to record the following production activities.
Purchased $80,000 of raw materials on credit.
Used $42,000 of direct materials in the Roasting department.
Used $22,500 of indirect materials in production.
Exercise 3-19 Recording costs of labor P3
Prepare journal entries to record the following production activities.
Incurred $42,000 of direct labor in the Roasting department and $33,000 of direct labor in the Blending department. Credit Factory
Wages Payable.
Incurred $20,000 of indirect labor in production. Credit Factory Wages Payable.
Exerclse 3-20 Recording overhead costs P3
Prepare journal entries to record the following production activities.
Paid other actual overhead costs of $40,000 in cash.
Applied overhead at 110% of direct labor costs. Direct labor costs were $42,000 in the Roasting department and $33,000 in the
Blending department.
Exercise 3-21 Computing and applying predetermined overhead rate P3
Blue Sky Soda estimates total factory overhead costs of $4,200,000 and total direct labor costs of $2,800,000 for its first year of
operations. During January, the company used $80,000 of direct labor cost in its Blending department and $60,000 of direct labor cost
in its Bottling department.
Compute the predetermined overhead rate as a percentage of direct labor cost.
Prepare the journal entry to apply factory overhead to the Blending and Bottling departments.
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