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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 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging, Transferred to finished goodn View transaction list Journal entry worksheet The company's revenue for the month totaled $450,000 from credit sales, and its cost of goods sold for the month is $252,000. 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. 1 2 3 5 Record direct materials used in production. Note: Enter debits before credits General Journal 6 7 $236,000 $126,000 Debit 1558 $208,000 $576,000 Credit 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 1 2 Transaction 1 3 Note: Enter debits before credits. Record direct materials used in production. Record entry 4 5 General Journal Clear entry 6 7 Debit Credit View general Journal