Recording events in job order costing Using Exhibit 2.17 as a guide, prepare summary journal entries to record the following transactions and events a through g for a company in its first month of operations. Raw materials purchased on account, $90,000. Direct materials used in production, $36, 500. Indirect materials used in production, $19, 200. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor. Paid cash for other actual overhead costs, $11, 475. Applied overhead at the rate of 125% of direct labor cost. Transferred cost of jobs completed to finished goods, $56, 800. Sold jobs on account for $82,000. The jobs had a cost of $56, 800.