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Bayas Corporation uses job order costing. Bayas uses Normal Costing Method in its costing system which includes two direct cost category - Direct Materials and Direct Labor. And one indirect cost pool. Budgeted Manufacturing overhead was $ 1,200,000 for the year and Bayas allocated the manufacturing overhead to all the jobs performed based on the Direct Manufacturing Costs of the jobs. Budgeted direct manufacturing overhead was $ 1,500,000 for the year. LABOR COSTS Prepare journal entries for the transactions below. (1) June 1 Bayas purchased Raw materials of $ 50,000. FOR CASH JUNE 1 MATERLAL INVENTORY $50,00 Cash $50,000 MANUFACTURING COSTS INCURRED - 1. WIP INVENTORY - DIRECT COST 2. MOH- INDIRECT COST (2) June 3 $40,000 are withdrawn from the storeroom for use in Job 102. Of these raw materials $ 30,000 are classified as direct materials and the remaining materials are classified as indirect materials. JUNE 3 WIP INVENTORY $30,com MOH MATERIAL INVENTORY $40,000 (3) June 15 Direct labor costs of $16,000 are incurred for job 102, but not yet paid. June 15 Work in process Inventory $16,000 Wages payable $16,000 (4) June 15 Budgeted Manufacturing overhead is allocated using the Budgeted manufacturing overhead rate for job 102. BMOHR : BMDH / BQ OF DAL COSTS : $ 1,200,000 / $1,500,000 = 0.8 TIMES OF DML COSTS OF THE JOB MOH ALLOCATED TO J013 102 3MPHRXAQ OF DML COST OF JOBI02 0.8 $ 16,000 (5) June 16 job 102 is completed. Transfer the amount from WIP to FG accounts (6) June 17 Sales of Job 102 to the customer at a price of $90,000. (company uses perpetual inventory system - needs to update inventory and record COGS) (7) June 30 OTHER Actual Manufacturing costs incurred for the month of June include 1. Utilities not yet paid on June 30 (use Utilities Payable A/C) $30,000 2. Depreciation of machinery for June ( use Accumulated Depreciation AXC) 15,000 3. Salaries paid to supervisors (use Cash A/C) 10,000 4. Salaries paid to manager( use Cash A/C) 25,000 5. Miscellaneous items paid in June(use Cash A/C) 20,000