Re-Tire produces bagged multch from recycled tires. Production involves shredding tires and packaging the pieces in the bagging department. All direct materials enter in the shredding process. A predetermined overhead rate of 185% of direct labor costs is used in both departments. The following describes production operations for October.

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Re-Tire produces bagged mulch from recycled tires. Production Involves shredding tires and packaging the pleces in the Bagging department. All direct materlals enter in the Shredding process. A predetermined overhead rate of 185% of direct labor costs is used in both departments. The following describes production operations for October. Sales (on credit) for the month total $450,000 and cost of goods sold for the month is $244,000. Prepare journal entrles dated October 31 to record October productlon actlittes for (1) direct materlals usage, (2) direct labor usage, (3) overhead applied, (4) costs transfer from Shredding to Bagging. (5) costs transfer from Bagging to finished goods, (6) credlt sales, and (7) cost of goods sold. Journal entry worksheet Journal entry worksheet Record direct labor used in production, but not yet paid. Nate: Enter debits before credits. Journal entry worksheet E Note: Enter debits beforn credats. Journal entry worksheet