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

Raw materials purchased on account, $110,000.

Direct materials used in production, $44,500. Indirect materials used in production, $20,000.

Paid cash for factory payroll, $40,000. Of this total, $32,000 is for direct labor and $8,000 is for indirect labor.

Paid cash for other actual overhead costs, $8,875.

Applied overhead at the rate of 125% of direct labor cost.

Transferred cost of jobs completed to finished goods, $72,000.

Sold jobs on account for $103,000. The jobs had a cost of $72,000.

Answer is not complete.

No	Transaction	General Journal	Debit	Credit
1	a.	Raw materials inventory	110,000
1		Accounts payable
2	b(1).	Work in process inventory
2		Raw materials inventory
3	b(2).	Factory overhead
3		Raw materials inventory
4	c.	Work in process inventory
4		Factory overhead
4		Cash
5	d.	Factory overhead
5		Cash
6	e.	Work in process inventory
6		Factory overhead
7	f.	Finished goods inventory
7		Work in process inventory
8	g(1).	Cost of goods sold
8		Finished goods inventory