Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October Direct materials used Direct labor used 25% in Shredding: 75% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods 5234,000 $ 158,000 175% $206,000 $587.000 The company's revenue for the month totaled $440,000 from credit sales and its cost of goods sold for the month is $244.000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage. (2) direct labor incurred (3) overhead applied. (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods. (6) credit sales, and (7) cost of goods sold View transaction list View journal entry worksheet No Credit Transaction 1 1 General Journal Work in process inventory--Bagging Raw materials inventory Debit 234,000 234,000 2 2 Work in process inventory--Shredding Work in process inventory Bagging Factory wages payable 39,500 118,500 158,000 3 3 Work in process inventory-Shredding Work in process inventory-Bagging Factory overhead 69,125 207 375 276,500 4 4 Work in process inventory Bagging Work in process inventory Shredding Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October Direct materials used Direct labor used 25% in Shredding: 75% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods 5234,000 $ 158,000 175% $206,000 $587.000 The company's revenue for the month totaled $440,000 from credit sales and its cost of goods sold for the month is $244.000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage. (2) direct labor incurred (3) overhead applied. (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods. (6) credit sales, and (7) cost of goods sold View transaction list View journal entry worksheet No Credit Transaction 1 1 General Journal Work in process inventory--Bagging Raw materials inventory Debit 234,000 234,000 2 2 Work in process inventory--Shredding Work in process inventory Bagging Factory wages payable 39,500 118,500 158,000 3 3 Work in process inventory-Shredding Work in process inventory-Bagging Factory overhead 69,125 207 375 276,500 4 4 Work in process inventory Bagging Work in process inventory Shredding
