Exercise $3-18$ Recording costs of materials $$ P$3$

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 P$3$

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 $$ P$3$

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 P$3$

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.