Question 1 Red Manufacturing Company (RMC) uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June. June 1 Purchased raw materials for RM20,000 on account. 8 Raw materials requisitioned by production: Direct materials RM8,000 Indirect materials 1,000 15 Paid factory utilities, RM2,100 and repairs for factory equipment, RM 8,000. 25 Incurred RM 108,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (7.000 hrs * RM 12 per hr)=RM 84,000 Indirect Labor (3,000 hrs * RM 8 per hr) 24,000 RM 108.000 Applied manufacturing overhead to production based on a predetermined overhead rate of RM7 per direct labor hour worked. 25