Merritt Company uses a process cost system of accounting for the following transactions. Journalize the entries using general journal format.
1. Purchased $100,000 of raw materials on credit.
2. Used $40,000 of direct materials in production.
3. Used $10,000 of indirect materials.
4. Incurred total labor cost of $80,000, paid in cash.
5. Used $50,000 of direct labor in production.
6. Used $8,000 of indirect labor.
7. Paid cash for overhead costs, other than indirect materials and indirect labor, of $12,000
8. Transferred completed products with a cost of $78,000 to finished goods inventory.
9. Sold $150,000 of products on credit. Their cost is $75,000. (two- part entry)