Prepare an income statement using sales =$500,000

EXERCISE 3-7 Prepare T-Accounts [LO7, LO8 Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories. a. $94,000 in raw materials were purchased for cash. b. $89,000 in raw materials were requisitioned for use in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials. c Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for di- d. Additional manufacturing overhead costs of $143,000 were incurred and paid. rect labor and the remainder was for indirect labor