Problem
The following information relates to the manufacturing operations of Mason Manufacturing during the month of July. The company uses job order costing.
• Purchase of direct materials during the month amount to $80,000. (All purchases were made on account)
• Materials issued for various jobs in process during the month total $86,000.
• Timecards of direct workers show 1,600 hours worked on various jobs during the month, for a total direct labour cost of $67,000.
• Direct workers were paid $63,000 in July.
• Actual overhead costs for the month amount to $126,000 (for simplicity, you may credit Accounts Payable).
• Overhead is applied to jobs at a rate of $75 per direct labour hour.
• Jobs with total accumulated costs of $280,000 were completed during the month.
• During July, units costing $164,000 were sold for $272,000. (All sales were made on account)
• Any balance remaining in the Manufacturing Overhead control account at the end of the month is closed directly to Cost of Goods Sold.
Task
• Prepare general journal entries to summarize each of these transactions in the company's general ledger accounts.