Job order costing system
Custom Products, which uses a job order cost system, completed the following transactions during the current month.
(a) Materials costing $65,000 were used on various jobs
(b) Time cards of direct workers indicate direct labor costs of $100,000 for the month
(c) Overhead is applied to jobs at a rate of 80% of direct labor cost
(d) Jobs with total accumulated costs of $150,000 were finished during the month
(e) Units costing $175,000 were sold during the month at sales prices totaling $350,000. All sales were on account (accounts receivable). Custom Products uses a perpetual inventory system.
In the space provided, prepare a general journal entry summarizing for the month each of the above categories of transactions. Explanations may be omitted.