Step-by-step solution

Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare Journal entries to record the following transactions during the month of June: June 1 Purchased raw materials for 25,000 on account 8 Raw Materials Requisitioned by production: Direct Materials 5,000 Indirect Materials 1.000 25 Incurred S 50,000 of factory labor 25 Time tickets indicated the following: Direct Labor (3,000 hrs X 12 per hr) 36,000 Indirect Labor (2,000 hrs X$ 8 per hr) 16,000 52,000 25 Applied manufacturing overhead to production based on a predetermined overhead rate of 10 per direct labor hour worked 29 Goods costing S 18,000 were completed in the factory and were transferred to finished goods 30 Goods costing $15,000 were sold for $25,000 on account Required Record journal entries for all transactions of June