Problem - How do I prepare journal entries for the following transactions for Melton Corporation using job costing:
a) Materials purchased on account - $50,500
b) Materials requisitioned for use in production: direct materials - $30,600, indirect materials - $5,400
c) Manufacturing labor incurred - $26,000
d) Manufacturing labor allocation - 90% direct labor, 10% indirect labor
e) Depreciation on factory equipment - $5,000
f) Prepaid expenses used relating to manufacturing operations - $6,100
g) Other miscellaneous factory costs incurred - $12,000 (credit accounts payable)
h) Manufacturing overhead is allocated at 120% direct labor
i) Cost of jobs completed - $80,000
j) Jobs sold to customers on account: costs of jobs -$70,000, sales price - $125,000