Prepare journal entries to record the following production activities for Hotwax.

1. Requisitioned $11,400 of indirect materials for use in production of surfboard wax.
2. Incurred $216,000 overhead costs (credit Other accounts).
3. Applied overhead at the rate of 145% of direct labor costs. Direct labor costs were $105,000 in the Mixing department and $75,000 in the Shaping department..

Drop down choices for parts 1, 2 & 3 include:

Accounts Payable

Accounts Receivable

Factory Overhead

Factory Wages

Finished Goods Inventory

Other Accounts

Raw Materials Inventory

Work in Process Inventory - Mixing

WOrk in Process Inventory - Shaping

Part 1 of journal entry is: Requisitioned $11,400 of indirect materials for use in production of surfboard wax.

Part 2 of journal entry is: Incurred $216,000 overhead costs (credit "Other accounts").

Part 3 of Journal entry is: Applied overhead at the rate of 145% of direct labor costs. Direct labor costs were $105,000 in the Mixing department and $75,000 in the Shaping department.