PopStop Company had no jobs in progress at the beginning of February and no beginning inventories. It started only two jobs during FebruaryJob P and Job Q. Job P was completed and sold by the end of the February and Job Q was incomplete at the end of February. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of February):

5. Assume the ending raw materials inventory is $1,000 and the company does not use any indirect

materials. Prepare the journal entries to record raw materials purchases and the issuance

of direct materials for use in production.

6. Assume that the company does not use any indirect labor. Prepare the journal entry to record

the direct labor costs added to production.

7. Prepare the journal entry to apply manufacturing overhead costs to production.

8. Prepare the journal entry to transfer costs from Work in Process to Finished Goods.

Estimated total manufacturing overhead $12,000 Estimated total direct labor hours to be worked 2,000 Total actual mfg overhead costs incurred $12,500 Job P Job Q Direct materials Direct labor Actual direct labor hours worked $13,000 21,000 1,400 $8,000 $7,500 500