Millennium Corporation uses a predetermined overhead rate of 150% of direct labor cost. The following information is available for the Millennium Corporation for the current year

Raw materials, Beginning year 4,200

Raw materials purchased 116,200

Raw materials used in production (Includes $7,000 of indirect materials) 121,800

Cost of goods sold $292,000

Direct Labor 64,750 Indirect labor 8,400

Finished goods, Beginning year 45,000 Goods transferred from Work in Process to Finished Goods 285,150

Factory insurance 11,200

Factory utilities 16,800

Rent on factory building 22,400

Depreciation of factory equipment 25,200

Prepare journal entries for the following transactions and events:

(a) Purchase of raw materials on account.

(b) Assign materials costs to Work in Process Inventory and Factory Overhead

(c) Pay Factory Payroll in cash

(d) Assign Factory Payroll to Work in Process Inventory and Factory Overhead

(e) Record all of the other factory overhead costs. Assume that all items other than depreciation are paid in cash.

(f) Assign Factory Overhead to Work in Process Inventory

(g) Transfer goods completed to Finished Goods Inventory

(h) Record cost of goods sold

(i) Assign the over- or under-applied amount overhead to Cost of Goods Sold

What is the overall purpose of recording these journal entries?