A firm produces its products by a continuous process involving three production departments, 1 through 3. Present entries to record the following selected transactions related to production during August:
(a) Materials purchased on account,$130,000.
(b) Material requisitioned for use in Department 1, $125,700, of which $124,200 entered directly into the product.
(c) Labor cost incurred in Department 1, $195,400, of which $174,000 was used directly in the manufacture of the product.
(d) Factory overhead costs for Department 1 incurred on account, $52,700.
(e) Depreciation on machinery in Department 1, $29,200.
(f) Expiration of prepaid insurance chargeable to Department 1, $7,000.
(g) Factory overhead applied to production, $105,300.
(h) Output of Department 1 transferred to Department 2, $362,700.