Zippy Manufacturing Co$.$

Zippy uses backflush costing to account for its manufacturing costs. The

trigger points for recording inventory transactions are the purchase of mate$-$

rials, the completion of products, and the sale of completed products. The

following transactions occurred during the period:

a$.$ Purchased raw materials on account, $$75,000.$

b$.$ Requisitioned raw materials to production, $$75,000.$

c$.$ Distributed direct labor costs, $$12,500.$

d$.$ Incurred manufacturing overhead costs, $$50,000.($Use Various Credits

for the credit part of the entry.$)$

e$.$ Cost of products completed, $$137,500.$

f$.$ Completed products sold for $$200,000,$ on account.

Required:

Prepare the necessary journal entries to record the above transactions.