Refer to the information in QS 20-2 and QS 20-3. Blanche’s Boxes requisitioned $ 9,000 of indirect materials from its raw materials and used $ 10,000 of indirect labor in its production of boxes. Also, it incurred $ 156,000 of other factory overhead costs. It applies factory overhead at the rate of 140% of direct labor costs. Prepare journal entries to record its
In QS 20-2, Blanche’s Boxes makes cardboard shipping cartons in a single operation. This period, Blanche purchased $62,000 in raw materials. Its production department requisitioned $ 50,000 of those materials for use in producing cartons.
In QS 20-3, Blanche’s Boxes incurred $135,000 in factory payroll costs, of which $ 125,000 was direct labor.
(1) Indirect materials requisitioned,
(2) Indirect labor used in production,
(3) Other factory overhead costs incurred,
(4) Application of overhead to production.