Re-Tire produces bagged mulch from recycled tires. Production involves shredding tires and packaging the pieces in the Bagging department. All direct materials enter in the Shredding process. A predetermined overhead rate of 175% of direct labor costs is used in both departments. The following describes production operations for October.

Sales (on credit) for the month total $950,000 and cost of goods sold for the month is $540,000. Prepare journal entries dated October 31 to record October production activities for 

(1) Direct materials usage, 

(2) Direct labor usage, 

(3) Overhead applied, 

(4) Costs transfer from Shredding to Bagging, 

(5) Costs transfer from Bagging to finished goods, 

(6) Credit sales, and 

(7) Cost of goods sold.

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Direct materials used (Shredding) Direct labor used (Shredding) Direct labor used (Bagging) Costs transferred from Shredding to Bagging $ 522,000 26,000 104,000 595,000 580,000 Costs transferred from Bagging to Finished Goods