Following are transactions for Montigo Manufacturing Company. Assume that the company has no beginning Work-in-Process Inventory.

1. Montigo purchased $\$ 600,000$ of raw materials, paying 10 percent down, with the remainder to be paid in 10 days.

2. $\$ 260,000$ of materials was requisitioned by the production manager ( 90 percent for direct use and the remainder for indirect purposes).

3. The liability incurred in (1) was paid in full.

4. 24,000 hours of direct labor and 2,000 hours of indirect labor were incurred. (Assume an average hourly wage rate of $\$ 9.00$ for both direct and indirect labor.)

5. The following salaries were paid:

Factory supervisor (a product cost)

$\$ 80,000$

Administrative executives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 Sales personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 6. Rent and utilities for the building of $\$ 30,000$ and $\$ 7,000$, respectively, were paid. Three-fourths of these expenses are applicable-to manufacturing and the remainder to administration.

7. Depreciation on factory equipment was $\$ 15,000$.

8. Advertising costs for the year totaled $\$ 15,000$.

9. Manufacturing overhead is applied at a rate of $\$ 6.90$ per direct labor hour.

10. All but $\$ 35,000$ of Work-in-Process Inventory was completed and transferred to Finished Goods Inventory.

11. The sales price of finished goods that were sold was 130 percent of manufacturing costs. Assume a perpetual inventory system and that all finished goods were sold 12. Close over- or underapplied overhead directly to cost of goods sold.

Required: Prepare journal entries for the transactions.