Problem
Keira's Kitchen uses a job order costing system.
8-1 Viola Davis orders a custom break front.
8-2 factory orders 20 yards of lumber for $100 per yard.
8-2-8-10 Factory works on break front
Direct labor 70 hours at $50 per hour.
Manufacturing overhead is allocated based on direct labor hours. The predetermined overhead rate is $30 per hour.
8-11 The breakfront is finished and transferred to the showroom.
8-12 The breakfront is delivered to Viola Davis and she is billed $40,000.
Required Prepare the appropriate journal entries and post them to the ledger.