Nona 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.
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June
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1
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Purchased raw materials for $22,000 on account.
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8
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Raw materials requisitioned by production:
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Direct materials
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$8,500
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Indirect materials
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1,500
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15
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Paid factory utilities, $2,400 and repairs for factory equipment, $7,500.
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25
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Incurred $98,000 of factory labor.
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25
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Time tickets indicated the following:
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Direct Labor
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(6,000 hrs. @ $13 per hr.)
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=
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$78,000
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Indirect Labor
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(2,500 hrs. @ $8 per hr.)
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=
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20,000
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$98,000
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25
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Applied manufacturing overhead to production based on a predetermined overhead rate of $8 per direct labor hour worked
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28
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Goods costing $20,000 were completed in the factory and were transferred to finished goods.
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30
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Goods costing $16,000 were sold for $23,000 on accoun
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