Question #2: Toy Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Toy has the following transactions for the month of June.

Note: Toy uses this Chart of accounts: Cash, Raw Materials Inventory, Work In Process Inventory, Manufacturing Overhead, Factory Labor, Factory Wages Payable, Accounts Payable.

June 1 Purchased raw materials for $35,000 on account.

8 Raw materials requisitioned by production:

Direct materials $6,000

Indirect materials 1,000

15 Paid factory utilities, $2,000 and repairs for factory equipment, $8,000.

25 Incurred $118,000 of factory labor.

25 Time tickets indicated the following:

Direct Labor (4,7,00 hrs $20 per hr) = $94,000

Indirect Labor (3,000 hrs $8 per hr) = 24,000

$118,000

Required:

Prepare journal entries to record the above transactions during the month of June.