Using Exhibit 19.12 as a guide, prepare summary journal entries to record the following transactions and events a through h for a company in its first month of operations.
a. Raw materials purchased on account, $ 90,000.
b. Direct materials used in production, $36,500. Indirect materials used in production, $19,200.
c. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor.
d. Paid cash for other actual overhead costs, $ 11,475.
e. Applied overhead at the rate of 125 percent of direct labor cost.
f. Transferred cost of jobs completed to finished goods, $ 56,800.
g. Sold jobs on account for $ 82,000. The jobs had a cost of $ 56,800.
h. Close under applied or over applied overhead to cost of goods sold.