Ivanhoe Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $17,200 on account. 8 15 Raw materials requisitioned by production: Direct materials Indirect materials $6,880 860 Paid factory utilities, $1,806 and repairs for factory equipment, $6,880. 2 2 2 25 Incurred $114,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (7,000 hrs x $12 per hr) $84,000 Indirect Labor (3,000 hrs x $10 per hr) 30,000 $114,000 25 25 28 280 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked. Goods costing $18,400 were completed in the factory and were transferred to finished goods inventory. 30 Goods costing $15,400 were sold for $20,400 on account. Date Account Titles and Explanation Debit June 1 Raw Materials Inventory Accounts Payable June 8 Manufacturing Overhead Work in Process Inventory Raw Materials Inventory June 15 Manufacturing Overhead June 25 June 25 Cash Factory Labor (To record factory labor costs) Work in Process Inventory 17200 1806 10000 Credit 17200 6880 860 1806 June 25 Work in Process Inventory June 25 June 28 Manufacturing Overhead Factory Labor (To assign factory labor to jobs and overhead) Work in Process Inventory Manufacturing Overhead (To apply overhead to jobs) Finished Goods Inventory Work in Process Inventory June 30 Accounts Receivable Cost of Goods Sold Sales Revenue