Malone, Inc. uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of July.
July 2 Purchased raw materials for $18,000 on account
9 Raw materials requisitioned by production:
Direct materials $14,000
Indirect materials $2,000
14 Paid factory utilities, $2,300 and repairs for factory equipment, $4,000
21 Incurred $45,000 of factory labor
26 Time tickets indicated the following:
Direct Labor(3,000 hrs $12 per hr)= $36,000
Indirect Labor(1,000 hrs $9 per hr)= $9,000$45,000
28 Applied manufacturing overhead to production based on a predetermined overhead rate of $6 per direct labor hour worked
28 Goods costing $56,000 were completed and transferred to finished goods
30 Goods costing $50,000 were sold for $80,000 on account