Garcia Manufacturing produces a product that passes through a molding process and then through an assembly process. Partial information related to its manufacturing activities for July follows.

Required
Prepare journal entries to record the transactions and events of July for

(a) Raw materials purchases,

(b) Direct materials usage,

(c) Indirect materials usage,

(d) Direct labor usage,

(e) Indirect labor usage,

\((f)\) Other overhead costs (paid in cash),

(g) Application of overhead to the two departments,

(h) Transfer of partially completed goods from Molding to Assembly,

(i) Transfer of finished goods out of Assembly,

(j) Sales on credit, and

\((\mathrm{k})\) Cost of goods sold.

Transcribed Image Text:

Direct materials Raw materials purchased on credit.. Direct materials used-Molding..... Direct materials used-Assembly.... Direct Labor Direct labor-Molding....... Direct labor-Assembly... Factory Overhead (Actual costs) Indirect materials used.... Indirect labor used Other overhead costs Total factory overhead incurred ****** $400,000 190,000 88,600 $ 42,000 55,375 $ 51,400 50,625 71,725 $173,750 Factory Overhead Applied Molding (150% of direct labor)........ Assembly (200% of direct labor) .... Total factory overhead applied...... Cost Transfers From Molding to Assembly....... From Assembly to finished goods ..... From finished goods to cost of goods sold ..... Sales......... ******* $ 63,000 110,750 $173.750 $277,200 578,400 506,100 $900,000