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Prepare summary journal entries to record the following transactions for a company in its first month of operations. Raw materials purchased on account, $88,000. Direct

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

  1. Raw materials purchased on account, $88,000.
  2. Direct materials used in production, $39,000. Indirect materials used in production, $17,800.
  3. Paid cash for factory payroll, $55,000. Of this total, $39,000 is for direct labor and $16,000 is for indirect labor.
  4. Paid cash for other actual overhead costs, $7,500.
  5. Applied overhead at the rate of 120% of direct labor cost.
  6. Transferred cost of jobs completed to finished goods, $60,600.
  7. Sold jobs on account for $86,500. The jobs had a cost of $60,600.

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