A firm produces its products by a continuous process involoving two production departments, 1 and 2 Present entries to record the following selected transactions related to production during August.
a) Materials purchased on account $130,000
b) Material requisitioned for use in Department 1, $125,700, of which $124,200 entered directly into the product
c) Labor cost incurred in Department 1, $195,400, of which $174,000 was used directly in the manufacture of the product.
d) Factory overhead costs for Department 1 incurred on account, $52,700
e) Depeciation on machinery in Department 1, $29,200
f) Expiration of prepaid insurance chargeable to Department 1, $7000
g) Factory overhead applied to production, $105,300