Journal entries...

Jan 4: Sold two ice cream systems to Day Dreamer's Ice Cream. The estimated direct labor is $8200. The estimated direct material is $3350. The estimated indirect material is $350. Day Dreamer's is to be billed in the amount of $20,925 on account. A check for $5000 will be collected as a deposit against that sale. The start date will be January 7th. The date promised will be January 23rd. Job 74.

Jan 19: Job 74. Apply from directmaterials requisition $2800 of direct materials. Apply from indirect materials requisition $325 of indirect materials. Apply from time cards 7950 of direct labor. Applied factory overhead is based on 25% of direct labor cost. Transfer the completed job to the COGS account from Direct Material and Indirect Material and Factory Overhead accounts. When making the journal entry for applying direct labor, debit COGS for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to Salaries Payable