Prepare the journal entries for the following transactions:

July 1 Purchased direct materials on account $5,000

July 9 Purchased indirect materials on account $2,000

July 12 Requested direct materials $4,000 & indirect materials of $1,000 for production

July 14 Paid payroll expenses $6,000 direct labor and $2,000 indirect labor

July 20 Paid the following manufacturing overhead costs: Rent $2,000; Utilities $1,000

July 21 Applied manufacturing overhead at a rate of 90% of direct labor costs

July 25 Transferred products to finished goods inventory at a cost of $8,000

July 29 Sold goods for selling price of $38,000 and a cost of $19,500

July 30 Recorded the under or over-applied manufacturing overhead costs

Custom Florals uses a job order costing system. Overhead is applied at the rate of 80% of direct labor cost. The following transactions are for June. Prepare the journal entries.

June 1 Purchased direct materials on account $300

June 2 Purchased indirect materials on account $50

June 4 Requested direct materials costing $250 ($200 for job AX and $50 for job BY) June 4 Requested indirect materials costing $40 for production

June 10 Paid the overhead costs: utilities $40, factory rent $300, maintenance $10

June 15 Recorded wages: direct labor $1,000 ($700 for job AX and $300 for job BY) June 15 Recorded indirect labor $300

June 15 Applied overhead to production

June 16 Transferred AX and BY to finished goods inventory total cost for both was $2,050

June 20 Delivered Job AX to the customer; cost was $1,460 and sales price of $2,000

June 30 Recorded overhead for prepaid insurance expired $30 and depreciation on factory $150

June 30 Recorded the under or overapplied overhead costs