Question: 1. Prepare journal entries to record the following production activities.
1. Incurred total labor cost of $77,000, which is paid in cash.
2. Used $58,000 of direct labor in production.
3. Used $19,000 of indirect labor.
2. Prepare journal entries to record the following production activities.
1. Transferred completed products with a cost of $137,000 to finished goods inventory.
2. Sold $450,000 of products on credit. Their cost is $150,000.