Laffer Lumber produces bagged bark for use in landscaping. Production involves packaging bark chips in plastic bags in a bagging department. The following information describes production operations for October.

	Bagging Department
Direct materials used	$	220,000
Direct labor used	$	38,000
Predetermined overhead rate (based on direct labor)		120	%
Goods transferred from bagging to finished goods	$	(202,500	)

The company's revenue for the month totaled $440,000 from credit sales, and its cost of goods sold for the month is $256,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct labor incurred (3) overhead allocation, (4) goods transfer from production to finished goods, and (5) credit sales. Journal entry worksheet

Record direct materials used in production.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 31

Record direct labor used in production, but not yet paid.

Date	General Journal	Debit	Credit
Oct 31

Record overhead applied to production.

Date	General Journal	Debit	Credit
Oct 31

Record the transfer of goods from production to finished goods.

Date	General Journal	Debit	Credit
Oct 31

Record the sale of goods on account.

Date	General Journal	Debit	Credit
Oct 31

Record the cost of goods sold.

Date	General Journal	Debit	Credit
Oct 31