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 20% in Shredding; 80% in Bagging, Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods $222,000 $159,000 185% $202,000 $582,000 The company's revenue for the month totaled $450,000 from credit sales, and its cost of goods sold for the month is $246,000. 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 Journal entry worksheet Record direct materials used in production. Note: Enter debits before credits. Transaction General Journal Debit Credit View transaction list 1 Record direct materials used in production. > 2 Record direct labor used in production, but not yet paid. 3 Record overhead applied to production. 4 Record the transfer of goods from Shredding to Bagging. 5 Record the transfer of goods to finished goods. Credit 6 Record the sale of goods on account. 7 Record the cost of goods sold. Note : = journal entry has been entered Record entry Clear entry View general journal