Sunland Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $18,800 on account. 8 Raw materials requisitioned by production: $7,520 Direct materials Indirect materials 940 Paid factory utilities, $1,974 and repairs for factory equipment, $7,520. 15 25 Incurred $128,000 of factory labor. 25 Time tickets indicated the following: (7,000 hrs x $14 per Direct Labor $98,000 hr) Indirect Labor (3,000 hrs x $10 per hr) 30,000 $128,000 25 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked. 28 Goods costing $18,800 were completed in the factory and were transferred to finished goods inventory. 30 Goods costing $15,800 were sold for $20,800 on account. Date Account Titles and Explanation Debit Credit (To record factory labor costs) v (To assign factory labor to jobs and overhead) (To apply overhead to jobs)