Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,409,100, and management budgeted 91,500 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. This transaction was recorded during August:

1. Recorded $2,625 depreciation on an administrative asset.

LIST OF ACCOUNTS:

1. Accounts Payable
2. Accounts Receivable
3. Accrued Payroll
4. Accumulated Depreciation
5. Advertising expense
6. Cash
7. Cost of Goods Sold
8. Factory Overhead
9. Finished Goods Inventory
10. Loss from abnormal spoilage
11. Materials Inventory (Direct Materials)
12. Materials Inventory (Indirect Materials)
13. Prepaid Insurance
14. Sales Revenue
15. Selling & Administrative Expense
16. Work-in-Process Inventory

PLEASE NOTE: THERE IS NO OPTION FOR DEPRECIATION EXPENSE SO PLEASE DO NOT USE!

Journal entry worksheet 1 6 Recorded $2,625 depreciation on an administrative asset. Note: Enter debits before credits